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Economic Times
14-05-2025
- Business
- Economic Times
Did Raymond shares really crash 66%? 4 key things to know about the realty demerger
Raymond share price plunged 66% as the stock turned ex-date for the demerger of Raymond Realty. The sharp fall reflects a notional price adjustment, not a sell-off. Raymond Realty enters its next phase with strong financials, key project traction, and a Rs 40,000 crore pipeline. It is expected to list by Q2 FY26, following Raymond's strategic vertical spin-offs. Tired of too many ads? Remove Ads 1. Demerger triggers notional price adjustment Tired of too many ads? Remove Ads 2. Realty business steps out with strong numbers 3. Expansion through JDAs sharpens MMR focus 4. Raymond Realty listing expected by Q2 FY26 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 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 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 however, are not losing value. They will now hold shares in both Raymond Ltd and the newly demerged 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 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 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 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.
Business Standard
14-05-2025
- Business
- Business Standard
Raymond just got lighter: share price adjusts for realty demerger
Raymond's share price plunged nearly 64% to Rs 556.45 as the stock turned ex-date for the demerger of its real estate arm, Raymond Realty. The record date for the demerger is set for Wednesday, 14 May 2025, to determine shareholder eligibility. As part of the arrangement, shareholders will receive one share of Raymond Realty for every share held in Raymond. The steep fall in Raymond's stock is not indicative of a sell-off but reflects the price adjustment due to the spinoff of its real estate vertical. Raymond Realty will now operate independently as a standalone listed entity. The demerger plan was first announced in July 2024 and received approval from the National Company Law Tribunal in March 2025. It officially came into effect on 1 May 2025. Post-demerger, investors will hold equity in both Raymond and Raymond Realty. Raymond Realty is expected to be listed on the stock exchanges in the second quarter of FY2025-26. The move is part of Raymond Groups broader strategy to unlock value by restructuring its operations into focused verticals. This marks the groups second major demerger, following the listing of Raymond Lifestyle in September 2024. During the Q4 quarter, the real estate business delivered a robust quarterly performance with a revenue of Rs 766 crore in Q4 FY25 from Rs 677 crore in Q4FY24 recording a growth of 13%. It reported an EBITDA of Rs 194 crore in Q4 FY25 from Rs 171 crore in Q4 FY24 and an EBITDA margin at 25.3% in Q4FY25. Raymond's real estate business signed two new Joint Development Agreements (JDAs) in Mahim and Wadala, with a combined Gross Development Value (GDV) of approximately Rs 6,800 crore. With these additions, the total potential revenue from the current real estate portfolio stands at nearly Rs 40,000 crore, comprising around Rs 25,000 crore from the Thane land parcel and approximately Rs 14,000 crore from the JDA-led model. In Q4 FY25, the business recorded a strong booking value of Rs 636 crore, driven primarily by sustained demand for projects such as The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, as well as The Address by GS in Bandra under the JDA model. Additionally, the real estate segment has turned net cash surplus, reporting Rs 399 crore in cash. Raymond Group, a pioneer in fabric manufacturing since 1925, later expanded into sectors such as engineering and real estate. Following the demerger of its lifestyle business into a separate listed entity in 2024, and now its real estate division, Raymond is now focused on its core strengthengineering. The companys engineering business is a market leader in the production of files and hand tools, with a strong footprint in both domestic and international markets. With the recent acquisition of Maini Precision Products Limited (MPPL), Raymonds engineering arm is set to transform into a large-scale provider of components for engineering, automotive, electric vehicles (EV), aerospace, and defense sectors.
India Today
14-05-2025
- Business
- India Today
Raymond shares crash 64%: Why is the stock falling after realty demerger?
Shares of Raymond Ltd plunged over 64% on Wednesday, not due to any negative news or fundamentals, but as a technical adjustment linked to the demerger of its real estate business, Raymond last count, the stock was trading at Rs 556.45, down 64.36% from its previous close of Rs 1,561.30. The sharp fall coincided with the ex-date of the demerger, when Raymond shares stopped factoring in the value of its real estate HAPPENING?Today is the record date to determine eligible shareholders who will receive shares of Raymond Realty, following the May 1 demerger. Under the approved scheme, investors will get one share of Raymond Realty for every share held in Raymond Ltd. This is the second major demerger for the group, following the earlier split of its lifestyle business into Raymond Lifestyle, which listed on stock exchanges in September real estate arm — now demerged — is expected to list separately by the September quarter. Until then, Raymond's stock will reflect only the non-realty segments of the Realty ended FY25 on a strong note, clocking Rs 766 crore in revenue for the fourth quarter, up 13% year-on-year. Its booking value stood at Rs 636 crore, led by projects like The Address by GS 2.0, Invictus, and Park Avenue – High Street Retail in Thane, along with the JDA project The Address by GS in business also reported a healthy EBITDA of Rs 194 crore with margins at 25.3%, and sits on a net cash surplus of Rs 399 Realty is expanding beyond Thane, having signed two new Joint Development Agreements in Mahim and Wadala, together valued at Rs 6,800 crore. These take its non-Thane project count to six, strengthening its presence across the Mumbai Metropolitan Region (MMR).'This strategic move reinforces our commitment to unlock shareholder value and focus on pure-play businesses,' said Gautam Hari Singhania, Chairman and MD of Raymond. 'We are strengthening our footprint across MMR and delivering on our promise of timely, high-quality developments.'While the sharp price drop may have caught some investors off-guard — especially those using mobile trading apps that may not yet reflect the adjusted valuation — the correction is largely mechanical and not a reflection of weak the company gears up for the separate listing of Raymond Realty, the demerger is seen as a move to enhance transparency, operational efficiency, and growth potential in one of India's most competitive real estate markets.
Business Standard
13-05-2025
- Business
- Business Standard
Raymond slides as Q4 PAT slumps 40% YoY to Rs 137 crore
Raymond slipped 1.29% to Rs 1,553.70 after the company's consolidated net profit tumbled 40.17% to Rs 137.47 crore in Q4 FY25 as against Rs 229.79 crore posted in Q4 FY24. Total income soared 94.90% year on year (YoY) to Rs 601.4 crore in the quarter ended 31 March 2025. Profit before tax (PBT) declined 4.44% YoY to Rs 44.55 crore in Q4 FY25, comapared with Rs 46.62 crore in Q4 FY24. EBITDA stood at Rs 99 crore in Q4 FY25, registering a growth of 38% YoY, compared with Rs 72 crore in same quarter last year. EBTDA margin reduced to 16.4% in Q4 FY25 from 23.3% in Q4 FY24. The engineering segment reported sales of Rs 528 crore in Q4 FY25, up from Rs 234 crore in Q4 FY24, reflecting the contribution from the MPPL acquisition completed in March 2024. Despite this growth, the segment remained affected by weak export demand and ongoing geopolitical challenges. EBITDA margin for the quarter stood at 15.3%, slightly down from 15.8% in Q4 FY24, primarily due to changes in the product mix. Notably, the aerospace division saw a recovery in growth following the resolution of production issues at a major aircraft manufacturer. Raymond remains a net cash surplus company, holding Rs 263 crore in cash as of the end of Q4 FY25. The demerger of Raymond Realty (RRL) was completed on 1 May 2025. The record date has been set for 14 May 2025, to determine the eligible shareholders of Raymond (RL) who will receive equity shares of RRL, in accordance with the approved scheme of arrangement. As per the scheme, each shareholder of Raymond Limited will receive one equity share of Raymond Realty for every share held. During Q4 FY25, the real estate business posted a strong performance with revenue rising to Rs 766 crore, up 13% from Rs 677 crore in Q4 FY24. EBITDA increased to Rs 194 crore from Rs 171 crore in the same period last year, with the EBITDA margin improving to 25.3%. The company remains focused on timely project execution, continuing its track record of delivering ahead of schedulea key driver of enhanced customer trust and confidence. During the quarter, the company has signed two new Joint Development Agreements (JDAs) in Mahim and Wadala, with a combined gross development value (GDV) of approximately Rs 6,800 crore. These strategic additions are set to significantly contribute to our future growth and reinforce our position as a leading developer in the MMR region. With these new projects, the total potential revenue pipeline for our Real Estate business now stands at approximately Rs 40,000 crore. This includes around Rs 25,000 crore from our Thane land parcel and Rs 14,000 crore from our JDA-led developments. In Q4 FY25, we achieved a robust booking value of Rs 636 crore, driven by strong demand for key developments such as The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, as well as The Address by GS in Bandra under our JDA portfolio. The Real Estate business continues to maintain a strong financial position and is now Net Cash Surplus with Rs 399 crore. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said; We are delighted to announce the successful demerger of our Real Estate business, which is expected to be listed in the Q2FY26. This strategic move emphasizes our commitment to drive sustainable growth via pure play business and further enhance shareholder value. We continue to expand our portfolio through the JDA route in this quarter, having signed two additional JDAs, in Mahim and Wadala aggregating to Rs 6,800 crore, with this now we have a total of six projects outside our Thane Land. On the Engineering business, we continue to remain highly optimistic about FY26 performance. The aerospace sector presents significant growth opportunities, and we are wellpositioned to leverage the same to deliver sustained value to our stakeholders. Raymond Group has been a pioneer and leader in fabric manufacturing, since 1925, and then forayed into other sectors such as engineering business and Real Estate. Raymond Realty has cemented its position amongst the home buyers in MMR region. Raymonds engineering business is well known with its leadership position in manufacturing files and hand tools and has a significant presence in national and international markets.
