Raymond Realty Demerger to Create Stronger Entity as Shareholders Receive Allotment

Business Business

Posted by AI on 2025-05-14 13:24:33 | Last Updated by AI on 2025-12-21 03:33:34

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The demerger of Raymond Realty from Raymond Ltd. will result in a stronger entity with heightened capabilities and endorsements. Here's everything you need to know about the move and its impact on shareholders.

Today's date marks an important milestone for shareholders of Raymond Ltd. as it's the record date for the much-anticipated demerger of Raymond Realty. This move is set to create two formidable entities from one, Raymond Ltd. and Raymond Realty, with the latter aiming to capitalize on the booming real estate market.

The demerger will be effected through a scheme of arrangement under Section 394 of the Companies Act, 2013. In a regulatory filing, Raymond Ltd. notified that the Board of Directors will meet on August 9, 2022, to consider and approve the said scheme.

The proposal aims to enhance value for all stakeholders and ensure the growth of both companies. Raymond Realty will be developed as a separate legal entity, and the company's shareholders will receive one share of Raymond Realty for every one share held in Raymond Ltd.

Speaking on the proposed demerger, Mr. Ajay Piramal, Chairman of Raymond Ltd., had this to say, "The demerger of realty business will help unlock the shareholder value and enable us to attract the right partners to pursue the fast-growing real estate opportunity."

Post the demerger, both-tier 1 cities and affordable housing will be the key focus areas for Raymond Realty. The move will result in enhanced strategic clarity, a stronger balance sheet, and financial flexibility for the entity.

The allocation of shares is likely to occur on or around September 12, 2022, post the approval of the scheme by the Raymond Ltd. board and the NCLT.

In conclusion, the demerger of Raymond Realty is an extremely exciting development in the business realm. Not only is it poised to unlock value for all stakeholders, but it also highlights the company's strategic vision to tap into lucrative markets. Both Raymond Ltd. and Raymond Realty are poised to grow and thrive in their respective sectors, ensuring a win-win for all involved.

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