Raymond Real Estate Unit to Demerge, Shareholders Get 1:1 Shares

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Synopsis:

Raymond Ltd to demerge its real estate business into Raymond Realty Ltd, issuing 66.6 million new shares with a face value of ₹10 each. Shareholders of Raymond Ltd will receive one equity share of Raymond Realty Ltd for each equity share held in Raymond Ltd.

Raymond Demerger Ratio

Raymond Ltd (RL), a prominent textiles and fabric manufacturer, has announced a strategic restructuring move involving the demerger of its real estate business into Raymond Realty Ltd. Shareholders of Raymond Ltd will receive one equity share of Raymond Realty Ltd for each equity share held in Raymond Ltd.

Explore: RAYMOND LTD Share Price

Transfer and Approvals

The real estate business will be transferred to Raymond Realty Ltd, a wholly-owned subsidiary of Raymond Ltd. This demerger is subject to approvals from the National Company Law Tribunal (NCLT), shareholders and creditors of RL, the central government, and other competent authorities as directed by the NCLT.

Equity Issuance

Upon the demerger becoming effective, Raymond Realty Ltd will issue 66,573,731 equity shares with a face value of ₹10 each to the equity shareholders of Raymond Ltd. These shares will be listed on BSE Ltd and the National Stock Exchange of India Ltd, pending necessary approvals.

Additional Read: Raymond Q4 Results: Highest ever quarter revenue at ₹2,688 Crore

Real Estate Projects - Revenue and Land Holdings

Raymond's real estate business has grown substantially, with FY24 revenues reaching ₹1,593 crore, reflecting a 43% year-on-year growth, and an EBITDA of ₹370 crore. Raymond Realty owns 100 acres of land in Thane, featuring an 11.4 million square feet RERA-approved carpet area, with 40 acres currently under development.

Future Prospects

Raymond has signed three new JDAs in Mahim, Sion, and Bandra East in Mumbai, with a combined revenue potential from these projects exceeding ₹7,000 crore. The development of the Thane land bank and the four JDA projects in the Mumbai Metropolitan Region give the company a potential revenue of ₹32,000 crore.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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