Raymond jumps 9 per cent on property deal

J K Investo Trade (India) (JKIT), associate company of Raymond has entered into an Agreement For Sale (AFS) for its property located at Thane. The AFS is with Elpis Ventures, an affiliate of Virtuous Retail South Asia Pte for the property comprising of approximately 78,310 sq. mtrs.

According to AFS, JKIT has agreed to sell the aforesaid property for a consideration of Rs. 700 crore subject to payment of taxes, cost of approvals, as applicable and terms & conditions set out in the AFS.

Raymond has forayed into real estate business in FY19. Around 20 acres of land has been approved for residential development and, at present, 14 acres are being developed. In this residential project, Raymond will develop overall 3,000 residential units across 10 towers. The company has received strong response for these apartments with around 450 applications through soft launch. The project is likely to be completed in five years and the company would not go for external funding as a large portion will be funded by the revenue accretion from this segment.

Raymond is a diversified group with presence in textiles and apparels, FMCG, auto components, engineering and real estate sector. The company’s revenue mix as of FY19 stood as follows: textiles (44.2 per cent), shirtings (8 per cent), apparels (26 per cent), garmenting (11.2 per cent), tools & hardware (5.4 per cent), auto components (3.6 per cent) and others (1.3 per cent).

On Wednesday, the stock of Raymond opened at Rs. 560.00 and jumped nearly 9 per cent to hit an intraday high of Rs. 598.80 on the BSE.