| Fund Raise Value | ₹409 CrPreferential Issue |
|---|---|
| Market Cap | ₹3,887.9 CrRealty Sector |
| P/E TTM | 12.89Industry: 35.92 |
| Revenue TTM | ₹3,137.46 CrTrailing 12 Months |
| Deal value | ₹409 Cr |
| Share of market cap | 10.5% |
Key highlights
- Issuance of 66,57,373 convertible warrants at a price of ₹614 per warrant
- Total fund raise aggregates to approximately ₹409 crore on a private placement basis
- Preferential allotment to J K Investors (Bombay) Limited, part of the Promoter Group
- Warrants are convertible into equity shares within a maximum period of 18 months
- Board approved increasing authorized share capital from ₹70 crore to ₹75 crore
Details of the Fund Raise
The capital infusion involves a preferential allotment of 66,57,373 convertible warrants to J K Investors (Bombay) Limited, an entity within the promoter group. Priced at ₹614 per warrant, the transaction includes a face value of ₹10 and a premium of ₹604. Investors are required to pay an upfront consideration, with the remaining balance payable upon the exercise of conversion rights.
Each warrant carries an entitlement to subscribe to one fully paid-up equity share. This issuance remains subject to shareholder approval and regulatory clearances, representing a strategic move to enhance the company's capital base for future project execution.
Conversion Terms and Capital Structure
Warrant holders have the flexibility to convert these instruments into equity shares in one or more tranches within a maximum period of 18 months from the date of allotment. Failure to exercise these rights within the stipulated timeframe will result in the lapse of unconverted warrants and the forfeiture of any upfront payments. To facilitate this issuance, the Board has proposed an increase in the authorized share capital from ₹70 crore to ₹75 crore.
This expansion involves the creation of 50 lakh additional equity shares, which will rank pari-passu with existing shares upon conversion.
Financial Performance and Market Valuation
Raymond Realty has demonstrated substantial scale, with annual operating revenue reaching ₹2,990.79 crore in the last fiscal year, a growth of over 435%. The company's net profit TTM stands at ₹301.52 crore, supporting a basic EPS TTM of ₹45.29. In terms of valuation, the stock trades at a TTM price-to-earnings ratio of 12.89, which is positioned below the industry average P/E of 35.92.
Despite a recent monthly price consolidation of 3.8%, the company maintains a Durability Score of 75, reflecting a strong financial profile relative to its peers in the real estate development space.
Business Overview and Promoter Stance
Formerly known as Raymond Lifestyle Limited, the company operates as the dedicated real estate arm of the Raymond Group. It focuses on large-scale residential developments, primarily in the Mumbai Metropolitan Region. Post-allotment, the specific allottee's shareholding is projected to increase from 29.83% to 35.99% on a fully diluted basis, assuming full conversion of the warrants.
This increased stake by the promoter group signals a long-term commitment to the realty business. The company continues to leverage its land bank and brand equity to navigate the competitive urban housing market while maintaining an operating profit margin of approximately 11.6%.
| Share price | ₹584 |
|---|---|
| Market capitalisation | ₹3,887.90 Cr |
| Revenue (annual) | ₹2,990.79 Cr |
| Net profit (annual) | ₹304.59 Cr |
| Revenue (latest quarter) | ₹526.67 Cr-54.47% vs previous quarter |
| Net profit (latest quarter) | ₹13.43 Cr-91.66% vs previous quarter |
| P/E (TTM) | 12.89×Sector 35.6× |
| Promoter holding | 50.93%+0.22% QoQ |
| FII holding | 5.85%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Raymond Realty Limited announcing the outcome of the Board Meeting for raising of funds through preferential issue of convertible warrants. Market figures from a third-party data provider.
