Raymond Limited, engaged in engineering businesses, witnessed a sharp fall in its stock price in today’s market session. This sudden drop has caught investor attention and raised questions about the reasons behind such a sharp decline. Let’s check it out.
Reason for the decline?
Raymond Limited recently went through a demerger of its real estate business, Raymond Realty. This means the company has separated its real estate division into a new, independent company. As a result, Raymond’s share price dropped sharply from Rs. 1,561.30 to Rs. 530 per equity share. Since then, the stock has retreated and hit a 5 percent upper circuit of Rs. 556.45 per equity share from the opening price.
However, this drop is not due to negative sentiment or selling pressure but simply reflects the fact that Raymond Realty is no longer part of Raymond Ltd. It’s a notional price adjustment, and shareholders are not losing value. Instead, they will now own shares in both Raymond Limited and the new company, Raymond Realty.
The record date for the demerger is May 14, 2025. Shareholders who own Raymond shares as of this date will receive one Raymond Realty share for every Raymond share they hold. The demerger was completed on May 1, and Raymond Realty is expected to be listed separately on the stock exchanges by the second quarter of FY26 (between July and September 2025).
Earlier, in September 2024, Raymond also separated its lifestyle business, Raymond Lifestyle, into a new company. It is now listed on the stock market and giving investors a chance to trade its shares separately.
Business Overview of Raymond Realty
Raymond Realty is starting strong as a standalone company with a net cash surplus of Rs 399 crore. In the March quarter of FY25, it reported a revenue of Rs 766 crore, a 13 percent increase from the previous year, and an EBITDA of Rs 194 crore with a solid margin of 25.3 percent.
The company also achieved a booking value of Rs 636 crore, driven by demand for projects like The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, as well as The Address by GS in Bandra.
Raymond Realty is focusing heavily on the Mumbai Metropolitan Region (MMR) and has expanded through joint development agreements (JDAs). In Q4 FY25, it signed new JDAs in Mahim and Wadala, adding Rs 6,800 crore to its potential gross development value. Overall, its real estate portfolio now has a potential revenue of Rs 40,000 crore, with Rs 25,000 crore from its Thane land parcel and Rs 14,000 crore from JDAs.
Gautam Hari Singhania, Chairman and MD of Raymond, emphasized that this move supports sustainable growth and enhances shareholder value. With six projects now outside Thane, Raymond Realty is strengthening its position in MMR while aiming to deliver projects on time and maintain steady growth in the competitive real estate market.
Written By – Nikhil Naik
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