Raymond Ltd. shares opened at ₹1,906.00 on the NSE today, dropping 39.60% from the previous day’s closing price of ₹3,156.10. This significant drop is due to the company’s demerger of its lifestyle business, which will now be listed separately around August-September.
On the NSE, Raymond's previous day's closing price was ₹3,156.10, and today's opening price was ₹1,906, reflecting a drop of 39.60%.
As the session progressed, the stock recovered slightly and was trading at ₹2,009.80, up 3.07% from the opening price. Analysts at MOFSL had previously estimated Raymond’s post-demerger share value at ₹1,415 per share, which includes ₹1,200 per share for the real estate segment and ₹215 for the engineering segment. They also suggested that the lifestyle business might be listed at around ₹2,930 per share.
Raymond’s demerger of the lifestyle business is just the beginning. The company also plans to demerge its real estate business, which will take 15-18 months. Eventually, Raymond will focus solely on its engineering business.
Current shareholders will receive four shares of Raymond Lifestyle for every five shares of Raymond they hold. The same goes for the real estate business with a 1:1 share exchange ratio.
This is to create three distinct businesses for better value unlocking, explained Arihant Capital Markets. The real estate segment is particularly promising. Out of 100 acres of land in Thane, 40 acres are being developed with a revenue potential of ₹9,000 crore. The remaining 60 acres could generate ₹16,000 crore in the next eight years.
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