Raymond Limited's realty demerger has officially taken effect, marking a significant step for the company and its shareholders. The company's board of directors has set May 14, 2025, as the record date for the allotment of shares in Raymond Realty Limited (RRL) to the eligible shareholders of Raymond Limited (RL).

Demerger Details and Share Allotment

The Raymond Realty demerger is a strategic move to separate the rapidly expanding real estate business from Raymond's core textile and apparel operations. This will create two distinct, focused entities, potentially unlocking greater value for shareholders. The scheme of arrangement became effective on May 1, 2025, following the filing of the necessary e-Form INC-28 with the Registrar of Companies in Pune and Mumbai on April 30, 2025.

The record date of May 14, 2025, is crucial as it will determine the shareholders of Raymond Limited who are eligible to receive shares in Raymond Realty Limited. Those holding Raymond Limited shares on this date will be allotted equity shares of Raymond Realty in a 1:1 ratio, as specified under the scheme.

Raymond's Perspective

Raymond anticipates that the demerger will maximize shareholder value by allowing both the real estate and lifestyle businesses to pursue independent growth strategies. After the demerger, Raymond and Raymond Realty will operate as separate listed entities. Raymond Lifestyle already debuted on the NSE and BSE on September 5 of last year. The listing of Raymond Realty is now pending.

Raymond Realty's Performance and Potential

Raymond Realty has shown promising growth, with a 43% year-over-year increase in revenue, reaching Rs 15.9 billion in FY24, and an EBITDA of Rs 3.7 billion. The company possesses a 100-acre land parcel in Thane, with 11.4 million square feet of RERA-approved carpet area. As of July 2024, five projects were actively under development on approximately 40 acres of this land, representing a total value of Rs 90 billion. The combined estimated opportunity across Thane and the Mumbai Metropolitan Region (MMR) is approximately Rs 320 billion, with these projects having a revenue potential of Rs 70 billion.

Financial Performance of Raymond

In the December 2024 quarter, Raymond's EBITDA increased by 75.3% to Rs 1.4 billion, with an EBITDA margin of 14.5% compared to 11.6% in the same period the previous year. The net profit for the same quarter rose by 61% year-over-year to Rs 723 million. For FY24, the company reported revenue of Rs 90,195 million, a 9.8% increase year-over-year, and a net profit of Rs 16,431 million.

Share Price Movement

Following the announcement of the demerger's effectiveness and the record date, Raymond's shares experienced a positive movement. On May 2, 2025, Raymond's share price was trading at ₹1,563 on the NSE at 9:59 AM, up by ₹35.70 or 2.34% from the previous close of ₹1,527.30. The stock opened at ₹1,531.00, reaching a high of ₹1,569.90 and a low of ₹1,508.40.