Raymond Realty Board Approves ₹408.76 Crore Preferential Issue of Convertible Warrants to Promoter Group
Board Approval for ₹408.76 Crore Preferential Warrant Issue
Raymond Realty's Board of Directors, at a meeting held on Friday, September 11, 2026, approved a preferential issue of convertible warrants. The company proposed issuing up to 66,57,373 warrants at approximately ₹409 crore.
The proposed allottee is J K Investors (Bombay) Limited, identified as a promoter group entity. The warrants will be issued for cash at ₹614 per warrant, including a premium of ₹604 per warrant, with each warrant entitling the allottee to subscribe to one fully paid-up equity share of face value ₹10.
Warrant Terms and Conversion Period
The warrants can be converted into equity shares, in one or more tranches, within a maximum period of 18 months from the date of allotment. Any warrants not converted within the 18-month period will lapse, and the upfront consideration paid for such warrants will be forfeited.
Capital Structure Changes
To accommodate the warrant conversion, the board approved an increase in the company's authorised share capital from Rs 70 crore to Rs 75 crore. The revised capital will comprise 7.5 crore equity shares of Rs 10 each, compared with 7 crore shares currently, creating an additional 50 lakh equity shares that will rank equally with existing shares in all respects.
Impact on Promoter Holding
On full conversion within 18 months, promoter ownership would rise to 35.99% from 29.83%. The transaction will increase the promoter-group entity's ownership while bringing fresh capital into the real estate company.
Shareholder Approval Pending
The approvals remain subject to shareholder consent and other statutory and regulatory clearances. An EGM is scheduled for October 8, 2026 to approve the ₹408.76 crore warrant issue and raise authorised capital to ₹75 crore. Raymond Realty did not specify the proposed use of the funds in the disclosure.
About Raymond Realty
Raymond Realty was demerged from parent company Raymond Ltd on May 14, 2025 with a demerger ratio of approximately 1:1, and got listed on BSE and NSE on July 1, 2025, solely focusing on real estate. Operating from an initial master-planned township in Thane, Raymond Realty has expanded its footprint across the Mumbai Metropolitan Region (MMR), with operations encompassing residential communities and integrated high-street retail developments across key micro-markets, including Thane, Bandra, Bandra Kurla Complex (BKC), Wadala, Mahim, and Sion.