Shares of Raymond surged over 7% to ₹1,535 on November 22 after the company received a ‘no objection’ letter from BSE and NSE for the demerger and subsequent listing of its real estate business, Raymond Realty. This development marks another strategic restructuring within the Raymond Group following the demerger of its lifestyle business two months ago.
Key Highlights:
- Demerger Approval:
The Raymond board approved the demerger of Raymond Realty on July 4, 2024. Post-demerger, Raymond Realty will function as a separate listed entity, enabling investors to directly invest in the company’s real estate business. - Shareholder Benefit:
As part of the arrangement, 6.65 crore equity shares of Raymond Realty, valued at ₹10 each, will be issued. Shareholders of the parent company will receive one share of Raymond Realty for each Raymond share they hold. - Business Performance:
For FY24, Raymond Realty posted revenues of ₹1,593 crore, reflecting 43% year-on-year growth, and an EBITDA of ₹370 crore. - Real Estate Expansion:
Raymond Realty recently launched its first joint development agreement (JDA) project in Bandra, Mumbai, and signed additional agreements in Mahim, Sion, and Bandra East. These projects contribute to a potential revenue pipeline of ₹7,000 crore, with the overall ongoing projects, including its Thane land parcel, expected to generate ₹32,000 crore in revenue.
This demerger underscores the growing importance of the real estate business within the Raymond Group, aligning with its strategy to unlock shareholder value through focused operations.
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