Raymond Limited plans vertical demerger of real estate business

Raymond Limited has announced that it will carry out a vertical demerger of its Real Estate Business into its wholly owned subsidiary business Raymond Realty Limited to boost shareholder value.

“Having clear three vectors of growth at Raymond group i.e. Lifestyle, Real Estate, and Engineering, this corporate action is in line with creating shareholder value,” said Raymond Limited’s managing director and chairman Gautam Hari Singhania, Indian Retailer Bureau reported. “This strategy to demerge the Real Estate business into a separate company that will be listed through the automatic route is another step to enhance shareholder value. The existing shareholders of Raymond Limited will get the shares in the new listed Real Estate company in a ratio of 1:1.”
 
The move is subject to the necessary statutory approvals and, following that, Raymond Limited and Raymond Realty Limited will be separate listed entities in the Raymond Group. The demerge is part of Raymond Limited’s plan to streamline its corporate structure and will enable each segment to have its own dedicated management team which will bring industry focused expertise and experience to each area.
 
Textile giant Raymond’s real estate business has recently scaled to a significant size and reported 43% year on year revenue growth in the 2024 financial year. The business also reported earnings before interest, taxes, depreciation and amortisation of Rs 370 crore last fiscal year.