Raymond Shares Crash 65% Today: Why Is The Stock Falling After Realty Demerger?
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Shares of Raymond Ltd plunged 65% on Wednesday; Here are key points which investors should know
Raymond Share Price Today: Shares of Raymond Ltd plunged 65% on Wednesday, but any negative news or fundamental weakness didn't drive the steep fall. Instead, it was a technical adjustment following the demerger of its real estate arm, Raymond Realty.
By mid-day, Raymond stock was trading at Rs 556.45, down 64.36% from its previous close of Rs 1,561.30. The timing coincided with the ex-date of the demerger, when Raymond shares stopped including the value of its realty business.
What's Driving the Fall?
Today marks the record date to determine which shareholders are eligible to receive shares of Raymond Realty. Under the approved demerger scheme (effective from May 1), existing investors will receive one Raymond Realty share for every Raymond Ltd share held.
The stock's sharp decline reflects a notional price adjustment, not panic selling. Since Raymond Realty has been carved out of the parent company, Raymond Ltd's share price has been recalibrated to exclude the real estate business. Some platforms may still show the pre-adjustment price, making the drop seem more dramatic than it actually is.
Shareholders Haven't Lost Value
Although Raymond Ltd's stock price dropped, shareholders now hold two separate investments: one in Raymond Ltd (which now reflects the non-realty businesses) and another in the soon-to-be-listed Raymond Realty.
This is the second major demerger by the Raymond Group. In September 2024, it had listed Raymond Lifestyle as a standalone entity following a similar split of its apparel and fashion businesses.
Strong Numbers from Raymond Realty
The Address by GS 2.0, Invictus, Park Avenue – High Street Retail in Thane, and the JDA-based The Address by GS in Bandra.
It posted a healthy EBITDA of Rs 194 crore with a margin of 25.3%, and holds a net cash surplus of Rs 399 crore.
Expansion Strategy Gains Momentum
Raymond Realty is aggressively expanding across the Mumbai Metropolitan Region (MMR). It has recently signed two Joint Development Agreements (JDAs) in Mahim and Wadala, together valued at Rs 6,800 crore, increasing its non-Thane project count to six.
'This strategic move reinforces our commitment to unlocking shareholder value and focusing on pure-play businesses," said Gautam Hari Singhania, Chairman and Managing Director of Raymond. 'We're expanding our footprint across MMR and committed to timely, high-quality developments."
What Investors Should Know
While the sharp drop in Raymond Ltd's share price may alarm some investors, especially those using apps or platforms that haven't updated valuations, it's important to note this is a technical correction, not a reflection of business weakness.
With the demerger complete and the real estate arm set to list independently, Raymond aims to boost transparency, operational focus, and growth potential across both entities.
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