Raymond receives NOC from exchanges for demerger of its realty business

After the demerger, the resulting company, Raymond Realty Limited (RRL), will be listed on both stock exchanges after obtaining the necessary approvals

Raymond Limited (RL) has received a no objection certificate (NOC) from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for the demerger of its real estate business, as per the company’s stock exchange filing on November 21.

 

After the demerger, the new company, Raymond Realty (RRL), will be listed on both the stock exchanges after obtaining the necessary approvals. The company’s board of directors had approved the demerger in a meeting held on July 4, 2024.

 

The demerger, while consolidating the entire real estate business of the group under one single entity, will “exploit the growth potential of the real estate business and attract a fresh set of investors/strategic partners to participate in the real estate business.”

 

 

After the demerger, RRL will issue over 67 million equity shares having a face value of Rs 10 each to the equity shareholders of RL. As per the company’s stock exchange filing, “Further, upon allotment of equity shares by RRL, the entire pre-scheme paid-up share capital of RRL held by RL shall stand cancelled, and the paid-up share capital of RRL to that effect shall stand cancelled and reduced, without any consideration.”

 

In RRL, the promoters will hold 49.01 per cent of the company’s equity shares, while 50.96 per cent of the shares will be held by the public.

 

After the completion of all formalities, there will be three listed entities in the Raymond Group, viz., Raymond Limited, Raymond Lifestyle Limited, and Raymond Realty Limited.

 

Additionally, currently, Raymond Realty owns 100 acres of land. Overall, the company's potential revenue from its current real estate business is estimated to be around Rs 32,000 crore.