Raymond Limited announced on July 4 that it will divest its real estate business to clarify the growth potential of the real estate business and attract new investors to participate in the realty business. said

Gautam Singhania, MD, Raymond Limited, said, “The strategy to convert the real estate business into a separate company that will be listed through the automated route is another step to enhance shareholder value.”

In a regulatory filing, the company informed that its board has approved a scheme of arrangement for Raymond Limited (the demerger company) and Raymond Realty Limited (the resulting company) and their respective shareholders.

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It announced the vertical separation of its real estate business into its wholly owned subsidiary Raymond Realty Limited (RRL). After the completion of this demerger, Raymond Limited and Raymond Realty Limited (RRL) will operate as separate listed entities within the Raymond Group subject to all regulatory approvals, the company said in a regulatory filing.

Also read: Mumbai Redevelopment News: Raymond Realty wins redevelopment project in Bandra. 2,000 crore revenue potential

According to the scheme of arrangement, each shareholder of Raymond Limited will receive one share of Raymond Realty for each share held in Raymond Limited. Standalone operating income of real estate division 1,592.65 crore in the last financial year, which is 24 percent of Raymond Limited’s total revenue.

This shall be subject to the requisite approvals and approval of the jurisdictional Bench of the National Company Law Tribunal (NCLT) and the approval of the shareholders and/or creditors, the Central Government, or such other competent authority as may be directed by the NCLT. can be done .

The new entity will seek automatic listing on the stock exchanges and as per the scheme of arrangement, each Raymond Limited (RL) shareholder will get 1 share of RRL for every 1 share held in Raymond Limited.

The strategic move comes at a time when Raymond’s real estate business has seen success in terms of revenue reporting. 1,593 crore (43% YoY growth) and of EBITDA 370 crore company said that in FY24, it is well positioned to chart its growth path as a separate entity.

Also read: Raymond Realty launched a housing project in Bandra, Mumbai, with income potential. 2,000 crores

Raymond Limited said it wanted to reorganize the real estate business carried on by itself and its subsidiaries.

“To tap the growth potential of the real estate business and attract a new set of investors / strategic partners to participate in the real estate business, it is proposed to consolidate the entire real estate business of the group into one To be strengthened under the same institution.

“Therefore, the real estate business undertaking of Raymond Limited is proposed to be demerged into Raymond Realty Limited thereby unlocking the value of the real estate business of Raymond Limited as a whole,” the company said.

Raymond Limited said the new entity would seek automatic listing on the stock exchange.

Raymond Realty owns about 100 acres of land in Thane with about 11.4 million square feet of RERA approved carpet area of ​​which about 40 acres is currently under development. There are five ongoing projects of value. 9,000 crore on its Thane land, with additional potential to generate more than 16,000 crore, over the total potential revenue 25,000 crore from this land bank, the company said in a statement.

Also read: Mumbai real estate market: Here’s why listed realtors are making a beeline for redevelopment projects

Leveraging an asset-light model, Raymond Realty has launched its first JDA project in Bandra, Mumbai. Additionally, Raymond has signed three new JDAs in Maham, Seven, and another in Bandra East Mumbai, eliminating the combined revenue potential of the four JDA projects in the Mumbai metropolitan region. 7,000 crores. With the development of the Thane Land Bank and the existing four JDAs gives potential revenue to the company. 32,000 crores.

Commenting on the development, Gautam Harisinghania, Chairman and Managing Director, Raymond Limited said; “Having said that we now have three clear vectors of growth at the Raymond Group namely Lifestyle, Real Estate and Engineering, this corporate action is in line with creating shareholder value. Real Estate business to be spun off into a separate company. This strategy of auto-listing is another step towards increasing shareholder value. Raymond Limited’s existing shareholders will get 1:1 stake in the newly listed real estate company.

The demerger is consistent 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 align independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to the unique dynamics of each sector, the company said in a statement. will allow to make

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