Raymond Shares Rally to Record High on Real Estate Demerger Approval
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Raymond shareholders will receive one share of Raymond Realty for each share held, and following the demerger’s completion, Raymond Realty will be listed on both stock exchanges.
Raymond shares surged 18.5% to a record high on July 5, following the board’s approval of demerging its real estate business, Raymond Realty. By 11:02 AM, Raymond’s shares were trading at Rs 3,392.45 on the NSE, slightly below the record high of Rs 3,484. Raymond Shares Real Estate Approval
The demerger aims to consolidate Raymond’s entire real estate business into a single entity, enhancing growth opportunities and attracting new investors and strategic partners. Under the demerger plan, Raymond will issue 6.65 crore shares of Raymond Realty, each with a face value of Rs 10. Shareholders will receive one share of Raymond Realty for each Raymond share held, with no cash or alternative considerations involved. Raymond Shares Real Estate Approval
Upon completion, Raymond Realty will be listed as a separate entity on both the National Stock Exchange and BSE.
Key Highlights:
- Shareholder Benefits: Raymond shareholders will receive one share of Raymond Realty for each share held.
- Strategic Consolidation: The demerger consolidates Raymond’s real estate business into a single entity to leverage growth opportunities.
- Market Performance: Raymond shares hit a record high, surging 18.5% following the demerger approval.
- Listing: Raymond Realty will be listed on both the NSE and BSE.
Company Statements:
“This strategic move comes as Raymond’s Real Estate Business has achieved scale, reporting revenue of Rs 1,593 crore (43% year-on-year growth) and EBITDA of Rs 370 crore in FY24, positioning it well to chart its own growth path as a separate entity,” the company stated in an exchange filing.
Raymond Realty owns 100 acres of land in Thane, with 11.4 million sq ft RERA-approved carpet area, of which about 40 acres are currently under development. The company has five ongoing projects on its Thane land worth Rs 9,000 crore, with an additional potential to generate over Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank. Raymond Shares Real Estate Approval
Last year, Raymond demerged its lifestyle business into Raymond Consumer Care in an effort to become debt-free. The lifestyle business included suiting manufacturing plants, B2C shirting, branded apparel, and subsidiaries like the garmenting business and B2B shirting. Raymond Shares Real Estate Approval
Conclusion:
The demerger of Raymond’s real estate business is a significant strategic move aimed at enhancing shareholder value and positioning Raymond Realty as a strong, independent entity in the real estate market. With substantial land assets and ongoing projects, Raymond Realty is poised for considerable growth, attracting new investments and strategic partnerships. This move follows Raymond’s previous successful demerger of its lifestyle business, reinforcing its commitment to streamlining operations and maximizing value for shareholders.
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