Unlocking Growth Potential: Raymond to Demerge Real Estate Business and List on Exchanges
Raymond Ltd to demerge real estate business and list on exchanges, unlocking value for shareholders and harnessing growth potential in the Indian property market.
Real EstateDemergerRaymond LtdIndian Property MarketGrowth PotentialReal Estate NewsJul 04, 2024
Each shareholder of Raymond Ltd will receive one share of Raymond Realty Ltd for every one share held in Raymond Ltd. The demerger is subject to requisite approvals and sanction from the National Company Law Tribunal (NCLT) and approval from shareholders and/or creditors, central government, or other competent authorities.
Upon the scheme coming into effect, Raymond Realty Ltd will issue 6,65,73,731 equity shares of Rs 10 each to the equity shareholders of Raymond Ltd. These shares will be listed on BSE Ltd and the National Stock Exchange of India (NSE).
Raymond Ltd's real estate business has achieved scale, reporting revenue of Rs 1,593 crore and EBITDA of Rs 370 crore in FY24. The company has around 100 acres of land in Thane with approximately 11.4 million sq ft RERA-approved carpet area. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore.
Raymond Realty has also recently launched its first joint development agreement (JDA) project in Bandra, Mumbai, and has signed three new JDAs in Mahim, Sion, and one more in Bandra East Mumbai. The combined revenue potential from these four JDA projects in the Mumbai Metropolitan Region is over Rs 7,000 crore.
Gautam Hari Singhania, Chairman cum Managing Director of Raymond Ltd, stated that the demerger is in line with creating shareholder value and that the existing shareholders of Raymond Ltd will get shares in the new listed Real Estate company in a ratio of 1 1.
Raymond Ltd is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting. The group has a presence in the engineering space, engaged in precision-engineered products with an expansive presence in national and international markets.
Frequently Asked Questions
Why is Raymond Ltd demerging its real estate business?
To unlock value for shareholders and harness growth potential in the Indian property market.
What is the ratio of shareholding in Raymond Realty Ltd for existing shareholders of Raymond Ltd?
1:1
What is the revenue potential from Raymond Realty's Thane land bank?
Over Rs 25,000 crore
How many JDA projects has Raymond Realty launched in the Mumbai Metropolitan Region?
Four
What is the combined revenue potential from these four JDA projects?
Over Rs 7,000 crore
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