Raymond shares news

 


Raymond Ltd's shares experienced a significant drop of approximately 66% on May 14, 2025, primarily due to the company's demerger of its real estate division, Raymond Realty. This decline is a technical adjustment reflecting the separation of the real estate business from Raymond's core operations, rather than a result of negative financial performance or investor sentiment .

Key Details of the Demerger:

#Ex-Date and Record Date:May 14, 2025, marked the ex-date for the demerger, meaning Raymond's shares began trading without the value of the real estate arm. Shareholders on record as of this date are entitled to receive one share of Raymond Realty for every share of Raymond held .

#Listing of Raymond Realty: The demerger became effective on May 1, 2025, and Raymond Realty is expected to list as an independent entity on the NSE and BSE by the September quarter of FY26 .

#Financial Outlook: Raymond Realty boasts a robust land bank of 100 acres, with a projected revenue potential of ₹25,000 crore. Additionally, it has joint development agreements worth ₹7,000 crore in the Mumbai area, indicating strong future prospects .

Market Reaction:

#Following the adjustment, Raymond's share price opened at ₹530, down from the previous close of ₹1,561.30. However, the stock quickly hit the 5% upper circuit at ₹556.45, suggesting investor confidence in the company's strategic restructuring and future growth potential .

Strategic Implications:

#This demerger is part of Raymond's broader strategy to streamline its operations and unlock value for shareholders by focusing on distinct business verticals. Earlier, in July 2024, Raymond had demerged its lifestyle business, Raymond Lifestyle, which was listed separately in September 2024. Post these demergers, Raymond Ltd will primarily concentrate on its engineering business, aiming to create focused and efficient business entities .



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