Noida Real Estate Market Sees Property Prices Double in Five Years
Noida Real Estate Market Sees Property Prices Double in Five
Read MoreRaymond's Real Estate Division to be Listed Independently, Demerger Announcement
In a strategic move aimed at unlocking shareholder value and leveraging growth opportunities in the Indian real estate market, Raymond Ltd has decided to demerge its real estate business. The decision was approved by the company's board and involves the formation of a new entity, Raymond Realty Ltd, which will be listed independently on stock exchanges.
Key Details of the Demerger:
Scheme of Arrangement:
Raymond Ltd (demerged company) and Raymond Realty Ltd (resulting company) will undergo a scheme of arrangement. Under this scheme, each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd.
Financial Impact:
Raymond's real estate division recorded standalone operational revenue of Rs 1,592.65 crore in the last fiscal year, constituting 24% of Raymond Ltd's total revenue.
Listing Details:
Upon the demerger becoming effective, Raymond Realty Ltd will issue 6,65,73,731 equity shares with a face value of Rs 10 each to shareholders of Raymond Ltd. These shares will be listed on BSE Ltd and the National Stock Exchange of India (NSE).
Operational Highlights:
Raymond Realty Ltd holds approximately 100 acres of land in Thane, with a RERA-approved carpet area of 11.4 million sq ft. Currently, 40 acres are under development, contributing to ongoing projects worth Rs 9,000 crore. The land bank has the potential to generate over Rs 25,000 crore in revenue.
Strategic Vision:
Gautam Hari Singhania, Chairman cum Managing Director of Raymond Ltd, emphasized that the demerger aligns with the company's strategy to focus on creating shareholder value through distinct business segments. The move underscores Raymond's commitment to expanding its presence in the real estate sector alongside its established textile business.
Future Prospects:
With additional joint development agreement (JDA) projects underway in Mumbai, Raymond Realty Ltd aims to enhance its revenue potential in the Mumbai Metropolitan Region, projecting significant growth in the coming years.
The demerger plan is subject to approvals from the National Company Law Tribunal (NCLT), shareholders, creditors, and regulatory authorities. Raymond Ltd anticipates that the new listing of Raymond Realty Ltd will enhance transparency, operational efficiency, and market competitiveness for both entities
. Raymond Ltd, renowned for its leadership in the textile industry with brands like 'Raymond Ready to Wear', 'Park Avenue', and 'ColorPlus', continues to strengthen its position with a robust retail network spanning over 1,450 stores across India.
In a strategic move aimed at unlocking shareholder value and leveraging growth opportunities in the Indian real estate market, Raymond Ltd has decided to demerge its real estate business. The decision was approved by the company's board and involves the formation of a new entity, Raymond Realty Ltd, which will be listed independently on stock exchanges.
Key Details of the Demerger:
Scheme of Arrangement:
Raymond Ltd (demerged company) and Raymond Realty Ltd (resulting company) will undergo a scheme of arrangement. Under this scheme, each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd.
Financial Impact:
Raymond's real estate division recorded standalone operational revenue of Rs 1,592.65 crore in the last fiscal year, constituting 24% of Raymond Ltd's total revenue.
Listing Details:
Upon the demerger becoming effective, Raymond Realty Ltd will issue 6,65,73,731 equity shares with a face value of Rs 10 each to shareholders of Raymond Ltd. These shares will be listed on BSE Ltd and the National Stock Exchange of India (NSE).
Operational Highlights:
Raymond Realty Ltd holds approximately 100 acres of land in Thane, with a RERA-approved carpet area of 11.4 million sq ft. Currently, 40 acres are under development, contributing to ongoing projects worth Rs 9,000 crore. The land bank has the potential to generate over Rs 25,000 crore in revenue.
Strategic Vision:
Gautam Hari Singhania, Chairman cum Managing Director of Raymond Ltd, emphasized that the demerger aligns with the company's strategy to focus on creating shareholder value through distinct business segments. The move underscores Raymond's commitment to expanding its presence in the real estate sector alongside its established textile business.
Future Prospects:
With additional joint development agreement (JDA) projects underway in Mumbai, Raymond Realty Ltd aims to enhance its revenue potential in the Mumbai Metropolitan Region, projecting significant growth in the coming years.
The demerger plan is subject to approvals from the National Company Law Tribunal (NCLT), shareholders, creditors, and regulatory authorities. Raymond Ltd anticipates that the new listing of Raymond Realty Ltd will enhance transparency, operational efficiency, and market competitiveness for both entities
. Raymond Ltd, renowned for its leadership in the textile industry with brands like 'Raymond Ready to Wear', 'Park Avenue', and 'ColorPlus', continues to strengthen its position with a robust retail network spanning over 1,450 stores across India.
