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Raymond Realty to Make Its Debut on Stock Exchanges After Demerger in Q2
Market News - May 12, 2025

Raymond Realty Demerger Completed, Shareholders to Receive Shares on 1:1 Basis

Raymond Realty Demerger Completed, Shareholders to Receive Shares on 1:1 Basis

 

Raymond spins off its real estate arm, offering shareholders a 1:1 share allotment in the newly listed Raymond Realty Limited. Record date set for May 14, 2025, as the group sharpens its business focus.

Major Milestone: Demerger Becomes Effective

Earlier this year, the National Company Law Tribunal (NCLT) gave the green light to the long-awaited separation of Raymond’s real estate arm.
The demerger became operational on May 1, 2025, following the board’s resolution and regulatory filings. This marks a significant restructuring for Raymond, a brand synonymous with India’s lifestyle and textile sectors, as it continues to streamline its corporate structure for sharper business focus.

What the Demerger Means for Shareholders

According to the approved Scheme of Arrangement, shareholders of Raymond Limited (RL) will receive one share of Raymond Realty Limited (RRL) for each share they own in RL, based on a direct 1:1 exchange ratio.
There are no additional costs or actions required from shareholders. The record date to determine eligibility for this share allotment is Wednesday, May 14, 2025.
This implies that all investors owning Raymond shares at the end of that day will automatically receive an equivalent number of shares in the newly separated Raymond Realty.

Raymond Realty: A Standalone Growth Story

Raymond Realty, once a division within the parent company, is now a fully independent, listed entity. The move allows the real estate arm to pursue its own strategy, leadership, and capital allocation, much like recent demergers seen in other Indian conglomerates.
Raymond Realty has established a strong presence in Mumbai’s residential market, with luxury projects in Thane and joint development agreements in key city locations such as Bandra, Mahim, Sion, and Wadala. In the last financial year, the company reported revenues of ₹15.9 billion and an EBITDA of ₹3.7 billion, highlighting its operational strength and future potential.
The company’s aggressive expansion in the Mumbai Metropolitan Region, including six major joint development agreements, positions it as a significant player in India’s booming real estate sector.

Strategic Rationale: Focus, Agility, and Value Creation

This demerger is part of a broader trend among Indian corporates to unlock value by spinning off high-growth verticals into standalone companies. Through the separation of its real estate division, Raymond intends to:
• Enhance operational focus for both businesses
• Enable agile, sector-specific decision-making
• Attract targeted investment and strategic partnerships
• Maximize long-term shareholder value
The move follows Raymond’s earlier spin-off of its lifestyle and fashion business, which was also listed as a separate entity. The group’s restructuring strategy reflects a clear intent to sharpen its business focus and respond to evolving market opportunities.

What’s Next for Investors?

Shareholders should ensure their holdings are updated and dematerialized before the record date of May 14, 2025, to be eligible for the 1:1 share allotment in Raymond Realty. After the listing, investors will be able to trade Raymond Realty shares independently of Raymond Limited, providing flexibility and potential for value appreciation based on the real estate business’s performance.

Conclusion

Raymond’s demerger of its real estate arm is a landmark step in the group’s ongoing transformation. By granting shareholders a direct stake in Raymond Realty, the company is unlocking value and setting the stage for focused growth in both its core businesses. As Raymond Realty prepares for its debut on the stock exchanges, investors and market watchers alike will be keenly observing its next moves in India’s dynamic real estate sector.

 

 

 

 

 

 

 

 

 

 

 

 

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Production target makes Coal India stakeholders anxious

Production target makes Coal India stakeholders anxious

Coal India limited (CIL) contributes more than 80% of coal production in India. It is one of the Public Sector Units in India which is into coal mining and refinery. For the financial year 2020-21, CIL was said to produce 710 million tonnes of coal by the coal minister Pralhad Joshi. The COVID-19 pandemic changed the entire scenario. Joshi added that the coal sector was also adversely affected, leading to ample fuel stock and low demand by the power and energy sector. The situation didn’t influence the government to bring down its target of producing 710 million tonne coal. It will help to achieve the goal of producing 1 billion tonne by the year 2023-24.

As on March 31, CIL had a stock of 74 MT. They are required to achieve the target because the government believes that the demand of the energy sector will rise in a few days. Furthermore, there will be low production in the monsoon season. Hence the maximum production will happen at this time, said an official to the media. The CIL stakeholders said that they already have a pile of stock for 30 days. If it produces 710 MT in the financial year 2020-21, it will lead to more pile up of stock, theft, poor quality and environmental pollution. It will further increase the chances of fire break up in the industry.

 

Production target makes CIL stakeholders anxious

The demand for the coal sector would increase after the lock down phase as mentioned by the Union Coal Minister. The minister of railways Mr. Piyush Goyal overlooks India’s opportunity to be a manufacturing hub. By acknowledging both the statements, the shareholders said these things would occur after a gestation period. Even before the pandemic, the situation was not favorable for the power sector due to low demand.

The coal ministry could have kept realistic targets which may help in keeping the coals at exposed seams. As per the demand, the coal could be extracted from the seams. This would lead to increase in the the cost per ton and decrease in the output per man per shift, said the ministry sources.

The shareholders had a counter statement that the coal productions maximum costs is Rs 1,800 per tonne. The wages and salaries paid to the workers constitutes almost half of the operational cost. An increase in the production target would lead to increase in the compensation paid to the workers of the company. The maximum possible stock which can be produced by CIL is 650 MT if the stock pile up of 125 MT is excluded. Any increase in the production will not be feasible as per the shareholders. Meanwhile, CIL has also taken measures to reduce the operational costs by shifting all of its subsidiary marketing counters from cities to subsidiary headquarters. The CIL officials thought that there are chances for a reduced production target for the financial year 2020-21.

 

 

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