Raymond announces vertical demerger of real estate arm
Raymond Ltd. has announced the vertical demerger of its real estate business into its wholly owned subsidiary, Raymond Realty Ltd (RRL).
Upon completion of this demerger, Raymond Ltd. and Raymond Realty Ltd. will operate as separate listed entities within the Raymond Group post all statutory approvals.
The new entity will seek automatic listing on stock exchanges and according to the scheme of arrangement, each Raymond Ltd. (RL) shareholder will receive 1 share of RRL for every 1 share held in Raymond Ltd.
“Having stated that now we have clear three vectors of growth at Raymond group i.e. Lifestyle, Real Estate and Engineering, this corporate action is in line with creating shareholder value creation,” said Gautam Hari Singhania, CMD, Raymond Ltd.
“This strategy to demerge the real estate business into a separate company that will be listed through automatic route is another step to enhance the shareholder value,” he said.
The company said demerger aligns with Raymond Group’s stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits.
“Leveraging Raymond’s institutional strength, the move will allow for independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector’s unique dynamics,” the company said in a statement
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