Raymond’s Stock Surges Over 17% on Real Estate Demerger Announcement

Raymond’s stock surged more than 17% on Friday following the announcement that the company plans to demerge its real estate business in order to unlock shareholder value and tap into the growth potential of the Indian property market.

The stock price rose 17.30% to trade at Rs 3,450.95 on the BSE and 16.83% to trade at Rs 3,434.75 on the NSE. During the day, the stock hit a 52-week high of Rs 3,480.35 and Rs 3,484 on the BSE and NSE, respectively.

Meanwhile, the 30-share BSE Sensex declined by 357.95 points (0.45%) to 79,691.72, and the broader Nifty fell by 64.90 points (0.27%) to 24,240.05.

Raymond Ltd announced on Thursday that the company’s board has approved the scheme of arrangement of Raymond Ltd and Raymond Realty Ltd, where each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd.

The real estate division’s standalone operational revenue was Rs 1,592.65 crore in the last fiscal year, accounting for 24% of Raymond Ltd’s total revenue.