Raymond Ltd Share Price – NSE  /  BSE

Textiles, Small Cap

According to the scheme of arrangement, each Raymond (RL) shareholder will receive 1 share of RRL for every 1 share held in Raymond and the new entity will seek automatic listing on stock exchanges.

Raymond Realty has around 100 acres of land in Thane with approximately 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. The Raymond's Real Estate Business has reported revenue of Rs 1,593 crore (43% YoY growth) and EBITDA of Rs 370 crore in FY24.

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.

Upon completion of this demerger, Raymond and Raymond Realty (RRL) will operate as separate listed entities within the Raymond Group post all statutory approvals.

Gautam Hari Singhania, chairman & managing director, Raymond, said; “Having stated that now we have 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 creation. This strategy to demerge the Real Estate business into a separate company that will be listed through automatic route is another step to enhance the shareholder value. The existing shareholders of Raymond will get the shares in the new listed Real Estate company in a ratio of 1:1.”

Raymond is a leading manufacturer of worsted suiting fabrics and garments in India. It also has a presence in precision engineering products and real estate.

The company reported 18% jump in consolidated net profit to Rs 229 crore in Q4 FY24 as compared with Rs 194 crore posted in Q4 FY23. Revenue from operations increased 21.32% to Rs 2,608.50 crore during the quarter as compared with Rs 2,150.18 crore in corresponding quarter last year.

The counter hit an all-time high at Rs 3,484 in intraday today.

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Ahluwalia Contracts (India) Ltd, Shilpa Medicare Ltd, BEML Ltd and Marksans Pharma Ltd are among the other gainers in the BSE's 'A' group today, 05 July 2024.

Raymond Ltd soared 17.85% to Rs 3466.9 at 11:47 IST. The stock was the biggest gainer in the BSE's 'A' group. On the BSE, 2.52 lakh shares were traded on the counter so far as against the average daily volumes of 34301 shares in the past one month.

Ahluwalia Contracts (India) Ltd spiked 14.97% to Rs 1502. The stock was the second biggest gainer in 'A' group. On the BSE, 63762 shares were traded on the counter so far as against the average daily volumes of 10627 shares in the past one month.

Shilpa Medicare Ltd surged 14.39% to Rs 661.35. The stock was the third biggest gainer in 'A' group. On the BSE, 1.01 lakh shares were traded on the counter so far as against the average daily volumes of 25445 shares in the past one month.

BEML Ltd exploded 11.54% to Rs 5190.95. The stock was the fourth biggest gainer in 'A' group. On the BSE, 1.56 lakh shares were traded on the counter so far as against the average daily volumes of 53462 shares in the past one month.

Marksans Pharma Ltd rose 10.17% to Rs 183. The stock was the fifth biggest gainer in 'A' group. On the BSE, 7.85 lakh shares were traded on the counter so far as against the average daily volumes of 89349 shares in the past one month.

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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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Raymond has received the approval of National Company Law Tribunal, Mumbai on 21 June 2024 for the composite scheme of arrangement of Raymond (demerged company) and Raymond Lifestyle (formerly known as Raymond Consumer Care) (transferee company) and Ray Global Consumer Trading (transferor company).

The scheme envisages demerger of lifestyle business carried on by the Company through itself and its subsidiaries into RLL and the consequent issuance of equity shares by RLL to all the shareholders of RL in the manner provided for in the scheme. Further, equity shares of RLL will be listed on the stock exchanges.

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