Raymond shares hit 5% upper circuit after Dalal Street prices in realty demerger

Economic Times

15-05-2025

Raymond shares surged 5% after completing the demerger of Raymond Realty, enabling direct investor participation in its real estate business. The newly independent unit, with Rs 40,000 crore potential revenue, is set to list by Q2 FY26.
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Shares of Raymond Ltd hit the 5% upper circuit at Rs 584.25 on the BSE Thursday, gaining sharply after the company concluded the demerger of its real estate arm, Raymond Realty , as part of a broader strategy to unlock value through standalone verticals.The surge follows the completion of the demerger on May 1 and the record date on Wednesday, May 14, which determined eligible shareholders who will receive one share in Raymond Realty for every share held in Raymond Ltd. The newly carved-out entity is expected to list separately on the NSE and BSE by the September quarter of FY26.'We are delighted to announce the successful demerger… This strategic move emphasizes our commitment to drive sustainable growth via pure play business,' said Chairman and Managing Director Gautam Hari Singhania.Realty arm steps out with strong metricsRaymond Realty, which has built a growing footprint in the Mumbai Metropolitan Region , exits the Raymond Ltd umbrella with a net cash surplus of Rs 399 crore. In the March quarter (Q4FY25), the business posted revenue of Rs 766 crore, up 13% year-on-year, and an EBITDA of Rs 194 crore with a margin of 25.3%.Despite no new project launches in the quarter, Raymond Realty posted a healthy booking value of Rs 636 crore, led by demand for projects like The Address by GS 2.0, Invictus, and Park Avenue – High Street Retail in Thane, as well as The Address by GS in Bandra.The realty unit is aggressively expanding its presence in the Mumbai Metropolitan Region through joint development agreements. In Q4FY25, it signed new JDAs in Mahim and Wadala, adding Rs 6,800 crore to its potential gross development value.'With these additions the total potential revenue from our current Real Estate Business is now close to Rs 40,000 crore, which includes Rs 25,000 crore from our Thane Land parcel and Rs 14,000 crore from JDA led model,' the company said.The listing of Raymond Realty will allow shareholders to directly participate in the real estate business while Raymond Ltd continues to operate its engineering and other legacy businesses. The demerger mirrors the September 2024 spin-off of Raymond group's lifestyle unit and is part of a wider effort to restructure the conglomerate into focused, independently run verticals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)