Raymond Realty Gets BSE and NSE In-Principle Nod for Rs 409 Crore Warrant Issue to Promoter Group

What was approved and by whom

Raymond Realty Limited, listed on NSE under the symbol RAYMONDREL and on BSE under scrip code 544420, is based in Jekegram, Pokhran Road No. 1, Thane (West). Its board met on 11 September 2026 and approved raising up to about Rs 409 crore through a preferential issue of convertible warrants to J K Investors (Bombay) Limited. J K Investors is part of the promoter group.

Shareholders approved the capital increase and the preferential issue at an extraordinary general meeting held by video conference on 8 October 2026. A later clarification to NSE dated 13 October 2026 revised the fund-use schedule and the shareholding figures.

BSE and NSE have now given in-principle approval for the issue, as reported on 23 October 2026. In-principle approval means the exchanges have no objection to the issue in principle, but the company must still meet SEBI rules before it can proceed.

How the warrants work

• Each warrant gives J K Investors the right to subscribe to one fully paid equity share of Rs 10 face value at Rs 614.
• Warrants can be converted in one or more tranches within 18 months of allotment.
• Warrants not converted within 18 months lapse, and the upfront amount paid on them is forfeited.
• The payment structure is 25% upfront and the remaining 75% on conversion. On the full amount, the upfront part is about Rs 102 crore and the balance about Rs 307 crore.
• The company must ensure that allottees do not engage in intra-day trading, in line with SEBI trading restrictions.
• To make room for the conversion, authorised share capital rises by 50,00,000 new equity shares of Rs 10 each, ranking equally with existing shares.

Use of proceeds

The fund-use schedule in the 13 October 2026 clarification to NSE replaces the earlier split reported in September 2026, which had allocated 60% to the Pokhran Road project, 15% to the Laxmi Nagar project and 25% to general corporate purposes.

CARE Ratings Limited has been appointed as monitoring agency for the issue, as SEBI rules require for issues above Rs 100 crore.

Effect on shareholding

J K Investors holds 1,98,61,793 shares, or 29.83%. If all warrants convert, it would hold 2,65,19,166 shares, or 35.99%, on a fully diluted basis. Across the whole promoter group, the clarification projects a rise from 50.93% to 55.04% on a fully diluted basis after conversion and exercise of 4,61,215 outstanding employee stock options. Public shareholding would fall from 49.04% to 44.93% on the same basis.

Until conversion, the paid-up capital and the number of shares in issue do not change. Conversion would add 66,57,373 shares to the existing base.

What it means for buyers and investors

For home buyers, the filing does not change any project, price or delivery schedule. It sets out how capital will be directed to two Thane sites, and the company says construction on those sites is the main use of the funds.

For shareholders outside the promoter group, the main effect is dilution. Their percentage stake falls as conversion proceeds, while the promoter group's share rises. Trade commentary has read the promoter-group participation as a sign of backing, but that is an analyst reading and not an official statement from the company or the exchanges.

The company reported pre-sales of Rs 902 crore for the second quarter of FY27, up 98% year on year. Raymond Realty develops residential and mixed-use projects mainly in the Thane micro-market, which is part of the Mumbai Metropolitan Region.

What happens next

• Allotment of the warrants to J K Investors on a private placement basis, subject to SEBI compliance and trading restrictions.
• Payment of the 25% upfront amount at allotment, with the remaining 75% due when warrants are converted.
• Conversion of warrants into equity shares in one or more tranches, within 18 months of allotment.
• Filing of the final voting results and the scrutiniser's report from the 8 October 2026 EGM with the exchanges.
• Monitoring of fund use by CARE Ratings.

Background on the company

Raymond Realty Limited, formerly Raymond Lifestyle Limited, was created through the demerger of the real estate business of its parent, Raymond Limited. Its recent projects include Ten X Habitat, The Address by GS and Ten X Era, along with a joint development project in Bandra. The company's investor presentation, with data as of 31 March 2025, describes about 100 acres of owned land in Thane.

This story concerns Raymond Realty only. Raymond Limited, the parent and a separate listed company, has its own warrant issues to the same promoter entity at different prices, and those are not part of this filing.