Raymond Limited on announced the vertical demerger of its real estate business into its wholly owned subsidiary, Raymond Realty Limited (RRL). Upon completion of this demerger, it said, Raymond Ltd and Raymond Realty Limited (RRL) will operate as separate listed entities within the Raymond Group post all statutory approvals.
The new entity will seek automatic listing on stock exchanges and according to the scheme of arrangement, each Raymond Ltd (RL) shareholder will receive 1 share of RRL for every 1 share held in Raymond Limited.
Raymond’s real estate business has achieved scale, reporting revenue of Rs 1,593 crore, up 43 per cent YoY and EBITDA of Rs 370 crore in FY24, and this positions it well to chart its own growth path as a separate entity. Raymond Realty has around 100 acres of land in Thane with approximately 11.4 mn sqft RERA approved carpet area of which about 40 acres is currently under development. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with 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. Leveraging an asset-light model, Raymond Realty has recently launched its first JDA project in Bandra, Mumbai.
Additionally, Raymond has signed three new JDAs in Mahim, Sion, and one more in Bandra East Mumbai, taking the combined revenue potential from four JDA projects in the Mumbai Metropolitan Region to over Rs 7,000 crore. With the development of Thane Land Bank and current 4 JDAs gives the company the potential revenue of Rs 32,000 crore.
The demerger aligns with the Group’s stated 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.
