Raymond Unveils Demerger of Real Estate Business into Separate Entity
Raymond Limited announces the demerger of its real estate business into a separate listed entity, Raymond Realty Limited, to unlock shareholder value and chart independent growth.
Real EstateRaymond LimitedDemergerShareholder ValueCorporate StructureReal EstateJul 04, 2024
The demerger, once completed, will result in Raymond and Raymond Realty operating as separate listed entities within the Raymond Group, post all statutory approvals. Shareholders of Raymond Limited will receive 1 share of Raymond Realty for every 1 share held in Raymond, as per the scheme of arrangement.
The real estate business has been growing rapidly, with a revenue of ₹1,593 crore in FY24, representing a 43% year-on-year growth, and an EBITDA of ₹370 crore. This momentum is expected to continue, with the business poised to chart its own growth path as a separate entity.
Raymond Realty boasts an impressive land bank of around 100 acres in Thane, with approximately 11.4 million square feet of RERA-approved carpet area. Five ongoing projects worth ₹9,000 crore are currently underway on this land, with an additional potential to generate over ₹16,000 crore, making a total potential revenue of over ₹25,000 crore.
In addition to its Thane land bank, Raymond Realty has also launched its first JDA project in Bandra, Mumbai, and has signed three new JDAs in Mahim, Sion, and Bandra East Mumbai, taking the combined revenue potential from these four JDA projects in the Mumbai Metropolitan Region to over ₹7,000 crore.
According to Gautam Hari Singhania, Chairman and Managing Director, Raymond, 'This demerger is in line with creating shareholder value creation. The strategy to demerge the real estate business into a separate company that will be listed through an automatic route is another step to enhance shareholder value.'
The company believes that the demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value. By leveraging Raymond's institutional strength, the move will allow for independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector's unique dynamics.
Raymond is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting. With a portfolio of leading brands, including 'Raymond Ready to Wear', 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure', and 'Ethnix by Raymond', among others, the company has established a strong presence in the market, with over 1,450 stores across more than 600 towns.
Raymond forayed into the realty sector with the launch of its maiden project, Ten X Habitat, spread across 14 acres, housing around 3,100 residential units.
Frequently Asked Questions
What is the main objective of Raymond's demerger of its real estate business?
The demerger aims to unlock shareholder value and enable the real estate business to operate independently, charting its own growth path.
What is the revenue potential of Raymond Realty's Thane land bank?
The Thane land bank has a potential revenue of over ₹25,000 crore, with five ongoing projects worth ₹9,000 crore and an additional potential to generate over ₹16,000 crore.
How many JDA projects has Raymond Realty launched in the Mumbai Metropolitan Region?
Raymond Realty has launched four JDA projects in the Mumbai Metropolitan Region, with a combined revenue potential of over ₹7,000 crore.
What is the ratio of shares that Raymond shareholders will receive in the new listed real estate company?
Raymond shareholders will receive 1 share of Raymond Realty for every 1 share held in Raymond, as per the scheme of arrangement.
What is Raymond's presence in the market?
Raymond has a strong presence in the market, with over 1,450 stores across more than 600 towns, and a portfolio of leading brands, including 'Raymond Ready to Wear', 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure', and 'Ethnix by Raymond', among others.
Related News Articles
Financial Stocks Show Promise, Real Estate Overvalued: Samir Arora
Samir Arora, Founder of Helios Capital, discusses the current market trends, highlighting the potential of certain financial stocks and the overvalued nature of real estate in major cities.
Sharad Pawar’s NCP Prepares for Maharashtra Assembly Elections
The Nationalist Congress Party (NCP) is gearing up for the upcoming Maharashtra assembly elections, scheduled for November 2023. The party, led by veteran politician Sharad Pawar, is strategizing to reclaim lost ground and secure a strong presence in the
Real Estate Resurgence: Top 26 Indian Firms Report Rs 35,000 Crore Sales in Q2
In a notable turnaround, India's top 26 real estate firms have collectively reported sales of Rs 35,000 crore in the second quarter of the financial year. Despite a slowdown earlier, these firms are showing strong signs of recovery and growth.
Jubin Nautiyal Buys Seaside 4 BHK Apartment in Mumbai’s Madh Island for ₹4.94 Crore
Mumbai real estate update: Popular playback singer Jubin Nautiyal has made a significant investment by purchasing a sea-facing 4 BHK apartment in the prestigious Raheja Exotica building located in Madh Island, Mumbai.
DOGE's Behest Could Lead to Closure of Numerous Federal Offices, Internal Records Show
Internal documents from the General Services Administration (GSA) reveal a potential large-scale closure of federal offices, following DOGE's directives. The move could affect dozens of locations and hundreds of federal employees.
Is Real Estate Set for a Bull Run? Analyzing Market Trends and Expert Insights
The real estate sector is showing promising signs of recovery, with experts like Ajay Bagga predicting significant growth. This article delves into the factors driving the market and what investors can expect in the coming years.