Raymond to spin off real estate business, list on exchange

July 4, 2024

Raymond has demerged its real estate business into its wholly owned subsidiary under Raymond Realty. Upon completion of this demerger, Raymond and Raymond Realty will operate as separate listed entities within the Raymond Group, post all statutory approvals.

Each Raymond shareholder will receive one share of RRL for every one share held in Raymond and the new entity will seek automatic listing on stock exchanges.

Raymond’s real estate business has reported a 43 per cent increase in revenue to ₹1,593 crore and EBITDA of ₹370 crore in FY24.

Raymond Realty owns 100 acres of land in Thane with 11.4 million sq ft RERA-approved carpet area, of which about 40 acres is currently under development.

Five projects

There are five ongoing projects worth ₹9,000 crore on its Thane land, with an additional potential to generate over ₹16,000 crore —making a total potential revenue of over ₹25,000 crore from this land bank.

Additionally, Raymond Realty has launched its first joint development agreement project in Bandra, Mumbai. Raymond has also signed three new JDAs in Mahim, Sion, and Bandra East in Mumbai worth over ₹7,000 crore. With the development of Thane Land Bank and current four JDAs combined gives company the potential revenue of ₹ 32,000 crore.

Gautam Hari Singhania, Chairman and Managing Director, Raymond said in line with creating shareholder value Raymond group now holds interest across three business verticals — lifestyle, real estate and engineering.

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 allow for independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector’s unique dynamics.

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