Shares of Raymond hit the 5% upper circuit on the National Stock Exchange for the second consecutive session on Thursday. The stock has gained sharply after the company concluded the demerger of its real estate business into a separate entity—Raymond Realty, which is expected to be listed in the September quarter.
The company had earlier announced that its shareholders will receive one share in the real estate arm for every share held in Raymond. From Wednesday, the stock has stopped factoring in the value of real estate business and thus the stock opened yesterday at a price one-third of its previous closing price.
“We are delighted to announce the successful demerger… This strategic move emphasises our commitment to drive sustainable growth via pure play business,” said Chairman and Managing Director Gautam Hari Singhania.
The real estate segment of Raymond has demonstrated robust growth in the March quarter, with revenue increasing by 13% on year. Between Q4 FY22 and Q4 FY25, it achieved a compound annual growth rate of 34%. The business also recorded a booking value of Rs 636 crore during the said period. Looking ahead, the company anticipates the booking value for its real estate division to grow by 20-25%.
The realty unit is expanding its presence in the Mumbai Metropolitan Region through joint development agreements. Raymond Realty has a strong outlook with a land bank of 100 acres, offering potential revenue of Rs 25,000 crore. It also has joint development assets with a gross development value of Rs 14,000 crore, according to Raymond’s investor presentation.
The real estate demerger is the parent company’s second, following the separation of its lifestyle business into Raymond Lifestyle. The plan to spin off the real estate arm into Raymond Realty was announced in July, and was approved by the National Company Law Tribunal in March. The demerger came into effect on May 1.
