Shares of Raymond
climbed 9% on the BSE after it's associate company signed an agreement to sell its property in Thane for Rs700cr.
The company’s associate company JK Investo Trade (India) Limited (JKIT) has entered into an Agreement for Sale (AFS) for its property measuring 78,310 sq. meters (~20 acres) located at Village Panchpakhadi, Thane (West) with an affiliate of Virtuous Retail South Asia Pte. Ltd. (VRSA) for Rs700cr subject to payment of taxes, cost of approval as applicable.
The land parcel at Raymond Junction adjoining the Singhania School has a significant advantage in terms of its location and this deal is seen to be iconic as it will bring in significant commercial development in Thane.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, “The sale of JKIT land parcel is a major step towards our strategy of asset monetization and value creation for our shareholders. I am delighted to state that this land deal, which is a large FDI in terms of real estate in Thane will bring in the much-required state of the art commercial and retail development and will lead to multiple job creation along with sustainable long term employment opportunities. Given the fact that our residential project, ‘Raymond Realty’ is underway, this development will ensure a vibrant real estate eco-system within its vicinity offering home buyers a better choice. Virtuous Retail South Asia is known for developing high-performance retail environments. Overall this landmark deal would give the much-required impetus to Thane’s real estate development in terms of residential, retail and commercial space.”
Raymond Ltd is currently trading at Rs593.40, up by Rs46.3 or 8.46% from its previous closing of Rs547.10 on the BSE.
The scrip opened at Rs560 and has touched a high and low of Rs599.80 and Rs560 respectively.