Raymond Limited, a textile and real estate company, has decided to merge with Raymond Realty Limited, a subsidiary company in the real estate business. The Raymond Limited Board of Directors met on July 4, 2024, and approved the demerger of Raymond Realty Limited. After completing the demerger process and getting all the regulatory approvals, both companies will operate as separate listed entities.
Shareholders Will Get Shares Of The Real Estate Company
In a regulatory filing filed with the stock exchanges, Raymond Limited said that the new entity will seek approval for automatic listing on the stock exchanges. Every shareholder of Raymond India will be given one share of Raymond Realty Limited in exchange for one share of Raymond India. The company said that Raymond Real Estate Business had achieved a revenue of Rs 1593 crore in the financial year 2023-24, which is 43 per cent more than last year, and the company’s EBITDA is Rs 370 crore. After this excellent performance, the company is ready to increase and become separately listed.
The Company Has A Big Plot In Thane
Raymond Realty has 100 acres of land in Thane with a RERA-approved carpet area of 11.4 million sqft, 40 percent of which is under development. The company said that work is going on on five projects worth Rs 9000 crore on Thane land, and this land bank could generate another Rs 16,000 crore. Due to this, this land bank has a total revenue potential of Rs 25000 crore.
Recently, Raymond has launched the first JDA project in Bandra, Mumbai. The company has also signed up for new JDAs in Mahim, Sion, and Bandra East Mumbai. After that, the company is working on a potential revenue of Rs 7000 crore in four JDA projects in the Mumbai Metropolitan Region. If the development of Thane’s land bank is added, it becomes Rs 32,000 crore.
Value Will Increase For Shareholders
On the decision to demerger Raymond Realty Limited from Raymond Limited, the company’s Chairman and MD, Gautam Singhania, said we now have three growth vectors in Raymond Group: lifestyle, real estate, and engineering. This corporate action has been taken considering the shareholders’ value creation. As part of the strategy to demerge the real estate business by making it a separate company, its listing will automatically increase shareholder value. Existing shareholders of Raymond Limited will get one share of the newly listed real estate company in exchange for one share of the company.
