Raymond Realty Eyes Rs. 25K Cr Growth, IPO Set for July 2025

Raymond Realty Ltd (RRL), the real estate arm of Raymond Ltd, is aggressively expanding its footprint through large-scale developments in Thane and strategic joint development agreements (JDAs) across prime Mumbai locations.

With a 100-acre land bank in Thane, 40 acres are under development with an expected revenue potential of Rs. 9,000 crore, while the remaining 60 acres are projected to generate Rs. 16,000 crore, bringing the total Thane revenue potential to Rs. 25,000 crore over the next seven years. Additionally, RRL has signed six JDAs in Bandra, Mahim, Sion, and Wadala, with a combined gross development value (GDV) of Rs. 14,000 crore.

Key Highlights

• Rs. 25,000 Cr revenue potential from Thane land; ₹14,000 Cr from Mumbai JDAs
• Zero net-debt model ensures strong margins and projected 16.2 percent RoE by FY28
• RRL IPO set for July 2025 with a DCF-based target of Rs. 1,383/shar

These projects follow an asset-light model, where RRL is responsible solely for construction, ensuring strong cash flows and minimal balance sheet stress.

Mumbai’s pressing need for redevelopment, driven by its aging infrastructure and population growth, presents immense opportunities. RRL is actively exploring more JDAs, leveraging the demand for modern, earthquake-resistant buildings.

Also Read: Raymond Realty to Launch Rs. 14,000 Cr Projects Post-Demerger

Financially, from FY25 to FY28, revenue, EBITDA, and net profit are expected to grow at CAGRs of 20 percent, 17 percent, and 15.9 percent respectively, with EBITDA margins at 20 percent and net margins at 10.5 percent. The net-debt-free model will help maintain a 16.2 percent return on equity (RoE) by FY28.

With a July 2025 listing planned, the demerger of RRL is seen as a value-unlocking move for Raymond shareholders. The company’s DCF-based FY28 price target stands at Rs. 1,383 per share, underscoring investor optimism for its focused real estate strategy.