Raymond arm signs pact to redevelop housing project in Mumbai

Textile and apparel company Raymond's on Tuesday announced that its wholly-owned subsidiary has signed a pact for the redevelopment of residential project in Mumbai.

"This is to inform that “Ten X Realty Limited”, the step-down wholly owned subsidiary of the Company, has today signed a binding term sheet for joint redevelopment of residential project in the western sub-urban district of Mumbai," the company siad in a regulatory filing.

The project is estimated to have, in aggregate, revenue potential of around Rs 2,000 crore over a period of next 5 years, it said. This is in line with the Company’s growth plan to expand its Realty horizons beyond Thane, the company further added.

In December last year, Raymond had incorporated a step-down subsidiary Ten X Realty Ltd (TXRL) to carry on real estate business for the development of land and properties at Thane, Maharashtra.

In order to fund and capitalize TXRL, the Board of Directors of Raymond had approved and passed an enabling resolution to infuse the funds up to Rs 150 crore in more than one tranche over a period of time.

Shares of Raymond closed nearly 6% lower at Rs 735.30 apiece on BSE on Tuesday.