Raymond’s board has approved a plan to separate its real estate business, Raymond Realty, through a scheme of arrangement. This move aims to unlock growth opportunities in the real estate sector and attract new investors specifically interested in realty ventures.
According to the company, the demerger will consolidate all real estate activities under one entity, Raymond Realty. Shareholders of Raymond will receive one share of Raymond Realty for each share they hold in Raymond.
Shareholder Benefits
The restructuring is expected to bring several benefits. It will allow each business segment—realty and other operations—to focus independently on their unique risks, competition, challenges, opportunities, and business strategies. This focused approach is anticipated to enhance efficiency in exploring new business opportunities.
Post-demerger, the shares of Raymond Realty will be listed on both the BSE and NSE stock exchanges. This means current shareholders will own shares in both the original Raymond entity and the newly listed Raymond Realty.
Approval and Implementation
Raymond has previously approved similar restructuring moves, including the demerger of its lifestyle business into Raymond Lifestyle and the amalgamation of Ray Global Consumer Trading into Raymond Lifestyle, which have also received approval from the National Company Law Tribunal (NCLT).
These strategic restructuring initiatives are aimed at creating a more streamlined corporate structure for Raymond.
On Thursday, Raymond’s shares closed nearly 1% lower at Rs 2,933 on the NSE.
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