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Last Updated : Oct 10, 2019 04:04 PM IST | Source: CNBC-TV18

Thane land sale deal will be completed in 2-3 months: Sanjay Bahl, Raymond CFO

Bahl, however, added that the board of directors will take a decision on the utilisation of the proceeds of this particular land monetisation once the transaction is closed.

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Any proceeds out of land monetisation at Raymond is used to deleverage the balance sheet and reduce debt, said Sanjay Bahl, group CFO of the company.

His comments came after JK lnvesto Trade, an associate company of Raymond, entered into an agreement with Elpis Ventures, an affiliate of Virtuous Retail South Asia, to sell 20-acre land parcel in Thane for Rs 700 crore.

"I must mention that as far as Raymond Limited is concerned, it has always been our stated objective... utilising any proceeds out of land monetisation for deleveraging our balance sheet and reducing our debt," Bahl said in an interview with CNBC-TV18.

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Bahl, however, added that the board of directors will take a decision on the utilisation of the proceeds of this particular land monetisation once the transaction is closed.

The Raymond stock was under pressure on October 10 after 8 percent rally on October 9 on the announcement of the sale of its 20-acre land parcel.

"We are delighted that we have done a binding agreement to sell now between Virtuous Retail South Asia and JK Investo Trade (JKIT). The valuation of the land is at Rs 700 crore. This is inclusive of the regulatory cost that has to be incurred out of this as well as the taxes that have to be paid. Approximately the total valuation of the regulatory cost and taxes would be about 1/3rd of the value of this deal," Bahl elaborated.

He said that the transaction will be closed in the next 2-3 months.

About the residential project, he said, "Our real-estate project has gone up to a flying start. We are delighted with the sales velocity that we have been able to achieve in our real-estate residential project. It’s a testimony to the project design and to size and offerings that we have along with the amenities. The customers who have put faith in this project are happy with the project that we are offering. It is one of the best in Thane for the size of the apartments that we are offering."

On the textile business front, the group CFO said, "Traditionally we have seen that with the onset of the festive season the second half of the year is always positive for the company and we expect this to continue.”

Source: CNBC-TV18

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First Published on Oct 10, 2019 04:02 pm
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