In a significant move, the Board of Directors at Raymond Limited has given the green light to invest a substantial sum of Rs 301 crore in Ten X Realty Limited (TXRL). TXRL, a wholly-owned subsidiary of Raymond Limited, is set to receive this investment, as disclosed in a regulatory filing made on October 3.
This substantial investment will be carried out in multiple installments, according to the company’s statement.
A portion of this investment, up to Rs 125 crore, will take the form of redeemable preference shares, subject to final terms and agreements, as specified in the company’s regulatory filing.
The remaining Rs 176 crore will be allocated as an inter-corporate deposit (ICD) to support TXRL in its ongoing endeavors.
TXRL, Raymond Limited’s step-down subsidiary, is currently engaged in the redevelopment of a housing society in Mumbai’s Bandra area under a Joint Development Agreement.
As of the latest available information, TXRL possesses an authorized share capital of Rs 75.10 crore, divided into one lakh equity shares of Rs 10 each and 7.5 crore preference shares of Rs 10 each. Notably, TXRL is still in the project stage, and its turnover remains at zero.
Looking ahead, the company has ambitious plans to introduce a premium residential project, featuring 2, 3, and 4 BHK apartments in Mumbai’s Bandra micro-market. The company aims to achieve a substantial turnover of Rs 2,000 crore from this project, which is scheduled to launch by the end of the current fiscal year, pending necessary approvals. Harmohan Sahni, Chief Executive Officer (CEO) of Raymond Realty, shared these details with Moneycontrol in August 2023.
Raymond, renowned as a textile major, diversified into real estate in 2019 by initiating a residential project on its Thane factory land. Having closed its factory over a decade ago, the company has successfully monetized its land bank by developing residential units on the premises. This strategic move underscores Raymond’s commitment to embracing new opportunities and expanding its business horizons.
Raymond Ltd, headquartered in Mumbai, Maharashtra, is the world’s leading integrated fabric manufacturer. With a market share exceeding 60% in the Indian suiting industry, it also holds the distinction of being India’s largest producer of woolen fabrics.
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