Raymond on Thursday announced the demerger of the real estate business into its subsidiary Raymond Realty Ltd (RRL). Shareholders of Raymond will receive one share of RRL for every share held and the new entity will seek automatic listing on the stock exchanges.

The Gautam Singhania-led firm said in a regulatory announcement post market hours that after the completion of the divestment, Raymond Ltd and RRL will operate as separate listed entities and that RRL will be a pure play listed firm.

Last month, Raymond had received approval from the National Company Law Tribunal (NCLT) for the demerger of its lifestyle business into Raymond Lifestyle (RLL) and the amalgamation of its consumer trading entity — Ray Global Consumer Trading — into RLL.

Due to the latest demerger (after receipt of all approvals), there will be three listed firms from the group. While RLL will be a listed lifestyle company with presence in branded textiles, branded apparel, garment, high value cotton shirting, there will be RRL (post approvals) and the existing listed firm Raymond Ltd which will include engineering business and a denim joint venture.

Raymond said the decision to demerge the real estate business has been done as it has achieved scale, reporting revenue of ₹1,593 crore (43 per cent growth over the previous year) and EBITDA (earnings before interest, taxes, depreciation & amortisation) of ₹370 crore in 2023-24, therefore positioning it well to chart its own growth path as a separate entity.

Raymond Realty has 100 acres of land at Thane in Maharashtra with 11.4 million sq ft RERA approved carpet area of which about 40 acres is currently under development.