Raymond's Real Estate Demerger: Unlocking Shareholder Value and Growth Opportunities
Raymond announces demerger of real estate business, creating a separate listed entity, Raymond Realty, to unlock shareholder value and drive growth.
Real EstateDemergerRaymondRaymond RealtyShareholder ValueReal EstateJul 05, 2024
The demerger will enable the firms to move forward independently, with specialization building on their respective capabilities. This segregation of business verticals will help to channelize resources required for all businesses, allowing them to focus on growing their respective segments. Additionally, the demerger will attract the right talent and provide enhanced growth opportunities to existing talent in line with a sharper strategic focus on each business segment under separate entities.
Raymond Realty has demonstrated impressive growth, recording a 43% year-on-year (YoY) increase in its revenue during FY24, reaching ₹1,593 crore. Its earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹370 crore. The company has a substantial land bank of approximately 100 acres in Thane, with nearly 1.14 crore square feet of RERA-approved carpet area. Of this, about 40 acres are currently under development. The company has five ongoing projects worth ₹9,000 crore on its Thane land, with an additional potential to generate more than ₹16,000 crore, making a total potential revenue of over ₹25,000 crore from the land bank.
Shares of Raymond have risen by nearly 97% since the beginning of the year, with a gain of over 96% in the last one year. The stock hit a fresh 52-week high of ₹3,484 and was trading higher by over 17% on Friday.
Information
Raymond is a leading Indian textile and apparel company, with a rich history dating back to 1925. Over the years, the company has diversified into various business segments, including real estate. Raymond Realty, a wholly owned subsidiary of Raymond, is a prominent real estate developer in India, with a strong presence in the Mumbai Metropolitan Region.
Raymond is a renowned Indian conglomerate with a diversified portfolio of businesses, including textiles, apparel, and real estate. With a legacy of over 95 years, the company has built a reputation for quality, innovation, and customer satisfaction.
Frequently Asked Questions
What is the purpose of Raymond's demerger of its real estate business?
The demerger aims to unlock shareholder value and provide better access to capital for both entities.
What is the current market value of Raymond Realty's land bank in Thane?
The company has a potential revenue of over ₹25,000 crore from its land bank in Thane.
How has Raymond's stock performed in the last one year?
The stock has gained over 96% in the last one year.
What is the revenue growth of Raymond Realty in FY24?
The company recorded a 43% year-on-year (YoY) growth in its revenue during FY24, reaching ₹1,593 crore.
What is the benefit of the demerger for existing talent in both entities?
The demerger will provide enhanced growth opportunities to existing talent in line with a sharper strategic focus on each business segment under separate entities.
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