Raymond Group Splits Real Estate Business into Raymond Realty Ltd

New Delhi [India], July 5: Shares of Raymond reached a new high after the Group announced the demerger of its real estate business into Raymond Realty Ltd (RRL). The Board of Raymond Limited stated that Raymond Limited and Raymond Realty Limited will now operate as separate listed entities.

The shares of Raymond surged around 10% to Rs 3236 per share as the stock markets opened. The new entity will seek automatic listing on stock exchanges. Each Raymond Ltd shareholder will receive one share of RRL for every share held in Raymond Ltd.

The demerger aims to unlock the potential of the group’s real estate business. The company stated that this move aligns with Raymond Group’s objectives of simplifying its corporate structure and enhancing shareholder value. Independent management teams will now focus on industry-specific strategies.

The real estate segment of Raymond reported a revenue of Rs 1,593 crore, a 43% growth YoY, and an EBITDA of Rs 370 crore in FY24. The group has around 100 acres of land in Thane, with about 40 acres currently under development. There are five ongoing projects worth Rs 9,000 crore, with a total potential revenue of over Rs 25,000 crore from this land bank.

Additionally, the company has signed three new Joint Development Agreements (JDAs) in Mahim, Sion, and Bandra East Mumbai, with a combined revenue potential of over Rs 7,000 crore. The total potential revenue from the Thane Land Bank and the JDAs is Rs 32,000 crore.

Gautam Hari Singhania, Chairman and Managing Director of Raymond, stated that the demerger is another step to enhance shareholder value. Existing shareholders of Raymond Limited will receive shares in the new listed Real Estate company in a 1:1 ratio.