Raymond Realty Made Stock Market Debut on July 1, Focused on 20% Margin Projects

Raymond Realty Ltd, the real estate arm of the Raymond Group, made its debut on the Indian stock exchanges on July 1, 2025, marking a key milestone in the conglomerate’s corporate restructuring strategy. The listing followed the company’s demerger from Raymond Ltd and was part of a broader plan to unlock shareholder value by creating sector-specific, focused business entities.

The formation of Raymond Realty as an independent entity was a core element of the group’s “Raymond 2.0” transformation roadmap, which began last year with the separation of its lifestyle business. Now operating as a pure-play real estate firm, Raymond Realty entered the capital markets with a net debt-free balance sheet and a strategic focus on high-margin development projects.

The company announced that it would pursue only those development opportunities that ensure a minimum internal profit margin of 20%. Managing Director and CEO Harmohan Sahni had emphasized this margin-focused strategy as central to the firm’s business model, which combines capital efficiency with selective expansion.

At the time of listing, Raymond Realty had a real estate development pipeline valued at ₹40,000 crore, supported by a 100-acre land bank and multiple joint development agreements (JDAs). Of this, projects worth ₹10,500 crore had already been launched, with partial sales completed. The company also outlined plans to add approximately ₹5,000 crore in new development potential annually, aiming to maintain consistent asset creation.

With its public listing, Raymond Realty became a focused real estate platform underpinned by the legacy of a 100-year-old conglomerate. The company now operates under a professional management team of over 400 members, supported by an experienced board with deep domain knowledge in real estate development.

Group Chairman Gautam Hari Singhania called the listing a significant milestone during Raymond’s centenary year. Under his leadership, the group has been realigning its businesses to match investor expectations and market trends. He noted that the real estate arm was well-positioned to support long-term value creation through disciplined expansion and efficient project delivery.

Until now, Raymond Realty’s activity had been concentrated in the Mumbai Metropolitan Region (MMR), where it had completed and launched multiple residential projects. The company confirmed plans to expand beyond MMR, with preparations underway to enter the Pune real estate market. This growth will follow an asset-light model that favors joint ventures and partnerships over direct land purchases.

One of the firm’s key upcoming ventures is a ₹5,000 crore housing project in Mumbai, being developed through a joint venture agreement. This and future projects in new markets are expected to consolidate the firm’s position in the mid-to-premium housing segment.

A defining feature of Raymond Realty’s preparedness for public listing was its zero net-debt position. This financial strength, combined with its joint development approach, is expected to support annual growth exceeding 20% and a return on capital employed (ROCE) above 20%.

Mr. Sahni stated that the company’s cautious project selection process, coupled with strict adherence to execution timelines and financial discipline, would help sustain these performance metrics. Rather than chasing scale for its own sake, the firm has opted for profitability-focused and risk-mitigated expansion.

The listing of Raymond Realty reflected the group’s larger effort to streamline its operations into three focused verticals—Lifestyle, Real Estate, and Engineering. Each vertical now operates independently with clear accountability and strategic direction. According to company leadership, this structure enhances agility, transparency, and value creation potential for investors.

Image source- raymondrealty.in