NCLT Greenlights Raymond’s Strategic Real Estate Demerger
The National Company Law Tribunal (NCLT) has approved Raymond Ltd’s plan to demerge its real estate business into a separate entity, Raymond Realty. This strategic restructuring, effective from 1 April 2025, will transfer all real estate assets and operations to the newly formed entity, offering shareholders a more targeted investment opportunity. As part of the arrangement, existing Raymond shareholders will receive one equity share of Raymond Realty for every share held in Raymond Ltd.
The demerger marks a pivotal moment for Raymond Ltd, a household name in textiles and branded apparel, as it shifts towards creating a standalone real estate venture. The move will enable dedicated management focus and facilitate resource optimisation, allowing both Raymond Ltd and Raymond Realty to pursue independent growth trajectories. With Raymond Realty’s shares set to be listed on the BSE and NSE, stakeholders will enjoy greater flexibility in their investment choices.
Raymond Ltd has garnered all necessary regulatory approvals for this demerger, including endorsements from the BSE and NSE, which raised no objections. The NCLT has also directed the company to hold virtual meetings with over 1.72 lakh equity shareholders and 534 unsecured creditors within 60 days to ensure comprehensive stakeholder participation. Notices have been sent to key government bodies, such as the Ministry of Corporate Affairs and SEBI, which have 30 days to respond with objections, if any.
From a sustainability perspective, the demerger signals a commitment to efficient resource allocation and environmentally responsible urban development. By separating its textile and real estate operations, Raymond aims to enhance its capability to deliver focused housing projects that align with evolving sustainability standards. With the restructuring, Raymond Ltd is on track to achieve zero net debt for its lifestyle and non-lifestyle businesses, simplifying its operations and ensuring robust financial health.
