Shares of Raymond soared 18.5 percent to reach a record high on July 5 after the board approved the demerger of its real estate business, Raymond Realty.
At 01:35 pm, Raymond’s shares were trading at Rs 3,299.90 on the NSE, down from the record high of Rs 3,484.
The demerger aims to consolidate the conglomerate’s real estate business into a single entity, facilitating growth opportunities and attracting new investors and strategic partners, according to Raymond.
Under the demerger plan, Raymond will issue 6.65 crore shares of Raymond Realty with a face value of Rs 10 per share. Shareholders of Raymond will receive one share of Raymond Realty for each share held, with no cash or alternative considerations involved.
Upon completion, Raymond Realty will be listed on both the National Stock Exchange and BSE as a separate entity.
“This strategic move comes as Raymond’s Real Estate Business has achieved scale, reporting revenue of Rs 1,593 crore (43 percent 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 holds 100 acres of land in Thane with 11.4 million sq ft of RERA-approved carpet area, of which about 40 acres is currently under development. The land includes five ongoing projects valued at Rs 9,000 crore, with additional potential to generate more than Rs 16,000 crore, totaling a potential revenue of over Rs 25,000 crore from this land bank.
Last year, Raymond demerged its lifestyle business into Raymond Consumer Care to become debt-free. The lifestyle business included the suiting business with manufacturing plants, B2C shirting, branded apparel, and subsidiaries such as the garmenting business and B2B shirting.
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