Raymond shares crash 66%: 4 key things to know about the realty demerger
Shares of
Raymond Ltd
tumbled 66% on Wednesday, trading at Rs 530 compared to Tuesday's close of Rs 1,561.30, as the stock turned ex-date for the demerger of its real estate business, Raymond Realty. While dramatic on the surface, the sharp fall is not a sell-off but a notional price adjustment reflecting the separation of the realty arm, which will now operate as a standalone entity.
The record date for the demerger is Wednesday, May 14, to determine eligible shareholders who will receive one share of Raymond Realty for every share held in Raymond. The demerger was completed on May 1, and the real estate entity is expected to list separately by the September quarter of FY26.
1. Demerger triggers notional price adjustment
The steep fall in Raymond's share price is not due to selling pressure but is a notional adjustment to reflect the demerger of its real estate business. With Raymond Realty no longer a part of Raymond Ltd's financials, the parent company's stock has been repriced accordingly. Some trading platforms may still show unadjusted prices, making the markdown appear more severe than it is.
Shareholders, however, are not losing value. They will now hold shares in both Raymond Ltd and the newly demerged Raymond Realty.
2. Realty business steps out with strong numbers
Raymond Realty, which has built a strong presence in the Mumbai Metropolitan Region (MMR), begins its next phase with a net cash surplus of Rs 399 crore. In the March quarter, it reported revenue of Rs 766 crore, up 13% year-on-year, with EBITDA of Rs 194 crore and a healthy margin of 25.3%.
Its booking value for the quarter stood at Rs 636 crore, driven by strong demand for key projects such as The Address by GS 2.0, Invictus, Park Avenue – High Street Retail in Thane, and The Address by GS in Bandra.
3. Expansion through JDAs sharpens MMR focus
Raymond Realty is scaling operations through joint development agreements (JDAs), particularly in the MMR. In Q4, it signed new JDAs in Mahim and Wadala, adding Rs 6,800 crore in 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, including Rs 25,000 crore from our Thane land parcel and Rs 14,000 crore from the JDA-led model,' the company said.
4. Raymond Realty listing expected by Q2 FY26
Raymond Realty is set to be listed on both NSE and BSE by the September quarter of FY26. It will trade as a fully independent entity, enabling investors to value and track the business separately from Raymond's other operations.
The demerger is part of Raymond's broader strategic transformation. The group previously spun off and listed its lifestyle business in September 2024, as part of a move to unlock value by creating focused verticals.
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