Upon completion, Raymond and Raymond Realty will operate as separate listed entities within the Raymond Group
Raymond has revealed the vertical demerger of its Real Estate Business into its wholly owned subsidiary, Raymond Realty (RRL). Upon completion, Raymond and Raymond Realty will operate as separate listed entities within the Raymond Group, pending all statutory approvals. According to the scheme of arrangement, each Raymond shareholder will receive one share of RRL for every share held in Raymond.
This move comes as Raymond’s real estate business has reported revenue of Rs 1,593 crore, a 43 per cent year-on-year growth and EBITDA of Rs 370 crore in FY24. Raymond Realty holds approximately 100 acres of land in Thane, with 11.4 million square feet of RERA-approved carpet area, of which about 40 acres is currently under development. The company has five ongoing projects worth Rs 9,000 crore on its Thane land and an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank.
Recently, Raymond Realty launched its first joint development agreement (JDA) project in Bandra, Mumbai and has signed three new JDAs in Mahim, Sion and Bandra East Mumbai. These projects in the Mumbai Metropolitan Region have a combined revenue potential of over Rs 7,000 crore, bringing the total potential revenue to Rs 32,000 crore when including the Thane Land Bank developments and the current JDAs.
Gautam Hari Singhania, Chairman and Managing Director, Raymond stated, “Having clear three vectors of growth at Raymond group i.e. Lifestyle, Real Estate and Engineering, this corporate action is in line with creating shareholder value. This strategy to demerge the real estate business into a separate company that will be listed through the automatic route is another step to enhance shareholder value. The existing shareholders of Raymond will get the shares in the new listed real estate company in a ratio of 1:1.”
The demerger aligns with Raymond Group’s objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits. 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.
