Raymond demerges its real estate biz into Raymond Realty

Raymond announced the vertical demerger of its Real Estate Business into its wholly owned subsidiary, Raymond Realty (RRL).

Upon completion of this demerger, Raymond and Raymond Realty (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 (RL) shareholder will receive 1 share of RRL for every 1 share held in
Raymond.

This strategic move comes as Raymond's Real Estate Business has achieved scale, reporting revenue of Rs 1,593 crore (43% YoY growth) and EBITDA of Rs 370 crore in FY24, positioning it well to chart its own growth path as a separate entity.

 

Raymond Realty has ~100 acres of land in Thane with ~11.4 mn sq ft 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, recently Raymond Realty has 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 JDA's gives company the potential revenue of Rs 32,000 crore.

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