Raymond to demerge real estate business, list realty vertical on exchanges

Textile major Raymond Ltd on Thursday said it will demerge the real estate business to unlock the value for shareholders and harness growth potential in the Indian property market. In a regulatory filing, the company informed that its board has approved the scheme of arrangement of Raymond Ltd (demerged company) and Raymond Realty Ltd (resulting company) and their respective shareholders.As per the scheme of arrangement, each Raymond Ltd shareholder will receive one share of Raymond Realty for every one share held in Raymond Ltd. The standalone operational revenue of the real estate division stood at Rs 1,592.65 crore in the last fiscal, accounting for 24 per cent of the total revenue of Raymond Ltd.This will be subject to the requisite approvals and sanction of the jurisdictional bench of the National Company Law Tribunal (NCLT) and subject to the approval of shareholders and/or creditors, central government, or such other competent authority as may be directed by the NCLT. Upon the scheme coming into effect on the effective date, on demerger, Raymond Realty would issue 6,65,73,731 equity shares of Raymond Realty Ltd having a face value of Rs 10 each to the equity shareholders of Raymond Ltd. The shares issued by Raymond Realty Ltd would be listed on BSE Ltd and the National Stock Exchange of India (NSE).