New Delhi [India], Raymond shares hit an all-time high on Friday, a day after the Group announced the vertical demerger of its real estate business into its wholly-owned subsidiary, Raymond Realty Ltd (RRL).
The board of directors of Raymond Limited announced on Thursday that Raymond Limited and Raymond Realty Limited (RRL) will operate as separate listed entities, according to a company statement.
Raymond shares rose around 10 per cent to Rs 3,236 per share when stock markets opened this morning.
For the stock market, the company said Thursday that the new entity will seek to be automatically listed on stock exchanges. Under the scheme of arrangement, each shareholder of Raymond Ltd (RL) will receive one share in RRL for each share held in Raymond Ltd.
Raymond's spin-off of its real estate division is seen as a move to unlock the potential of the group's real estate business.
"The demerger aligns with Raymond 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 enable independent and dedicated management teams with specific expertise to sharpen business focus and adapt investment strategies to the unique dynamics of each sector," the company said in a statement.
Raymond group's real estate segment reported revenue of Rs 1,593 crore, which was a year-on-year growth of 43 per cent and the company's EBITDA (earnings before interest, taxes, depreciation and amortisation) was Rs 370 crore in FY24.
The group has around 100 acres of land in Thane with approx. RERA approved carpet area of 11.4 million sq ft, of which approximately 40 acres are currently under development. There are five ongoing projects worth Rs 9,000 crore in its Thane lands, with further potential to generate over Rs 16,000 crore, generating a total potential income of over Rs 25,000 crore from this land bank. .
Additionally, the company also signed three new JDAs (Joint Development Agreements) in Mahim, Sion and one more in Bandra East Mumbai, taking the combined revenue potential of four JDA projects in the Mumbai metropolitan region to over 7 billion of rupees. With the development of Thane Land Bank and the current 4 JDAs, the company has potential revenue of Rs 32,000 crore.
"This strategy of spinning off the real estate business into a separate company that will be self-listed is another step to enhance shareholder value. Existing shareholders of Raymond Limited will get the shares of the new listed real estate company in a 1:1 ratio," said Gautam Hari Singhania, CEO of President C, Raymond.
The company stated that the demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits. The move will allow dedicated, independent management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to the unique dynamics of each sector.
The board of directors of Raymond Limited announced on Thursday that Raymond Limited and Raymond Realty Limited (RRL) will operate as separate listed entities, according to a company statement.
Raymond shares rose around 10 per cent to Rs 3,236 per share when stock markets opened this morning.
For the stock market, the company said Thursday that the new entity will seek to be automatically listed on stock exchanges. Under the scheme of arrangement, each shareholder of Raymond Ltd (RL) will receive one share in RRL for each share held in Raymond Ltd.
Raymond's spin-off of its real estate division is seen as a move to unlock the potential of the group's real estate business.
"The demerger aligns with Raymond 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 enable independent and dedicated management teams with specific expertise to sharpen business focus and adapt investment strategies to the unique dynamics of each sector," the company said in a statement.
Raymond group's real estate segment reported revenue of Rs 1,593 crore, which was a year-on-year growth of 43 per cent and the company's EBITDA (earnings before interest, taxes, depreciation and amortisation) was Rs 370 crore in FY24.
The group has around 100 acres of land in Thane with approx. RERA approved carpet area of 11.4 million sq ft, of which approximately 40 acres are currently under development. There are five ongoing projects worth Rs 9,000 crore in its Thane lands, with further potential to generate over Rs 16,000 crore, generating a total potential income of over Rs 25,000 crore from this land bank. .
Additionally, the company also signed three new JDAs (Joint Development Agreements) in Mahim, Sion and one more in Bandra East Mumbai, taking the combined revenue potential of four JDA projects in the Mumbai metropolitan region to over 7 billion of rupees. With the development of Thane Land Bank and the current 4 JDAs, the company has potential revenue of Rs 32,000 crore.
"This strategy of spinning off the real estate business into a separate company that will be self-listed is another step to enhance shareholder value. Existing shareholders of Raymond Limited will get the shares of the new listed real estate company in a 1:1 ratio," said Gautam Hari Singhania, CEO of President C, Raymond.
The company stated that the demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits. The move will allow dedicated, independent management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to the unique dynamics of each sector.
