Raymond Ltd, the well-known textile and real estate conglomerate, witnessed a dramatic 66.05% plunge in its stock price on Wednesday, May 14, as the counter turned ex-date for the demerger of its real estate business, Raymond Realty Ltd. The stock dropped to ₹530 from its previous close of ₹1,561.30, sparking concern among retail investors and traders alike.

However, experts and company sources clarified that this sharp drop was merely technical and part of the demerger adjustment, not indicative of any loss in actual shareholder value.

Why Did Raymond Shares Crash 66%?

The primary reason behind the sudden drop is the stock going ex-date — the date on which the real estate unit Raymond Realty Ltd. was officially removed from the parent company’s valuation.

Investors might notice unadjusted prices on some mobile trading apps, which may still reflect pre-demerger levels, falsely amplifying the perceived drop.

The demerger was completed on May 1, and May 14 was set as the record date to identify eligible shareholders for the allocation of shares in Raymond Realty.

What Do Shareholders Get?

Under the approved scheme:

• Shareholders of Raymond Ltd. will receive one equity share of Raymond Realty for each share held in Raymond Ltd.

• The fall in Raymond Ltd.'s price does not reflect a real loss, as the total value of holdings remains intact.

• Investors now effectively hold equity in two separate entities — Raymond Ltd. and Raymond Realty Ltd.

This split is aimed at unlocking shareholder value and offering clearer business verticals to the investing public.

Raymond Realty: The Next Listing in Line

Raymond Realty is expected to be listed in Q2 FY26, and is anticipated to be a key value creator within the Raymond Group’s portfolio.

The real estate vertical has performed impressively in recent quarters:

• Booking value of ₹636 crore in Q4 FY25.

• Notable projects include:

  • The Address by GS 2.0

  • Invictus

  • Park Avenue – High Street Retail in Thane

  • The Address by GS (JDA project) in Bandra.

• Revenue of ₹766 crore in Q4 FY25, reflecting a 13% YoY growth.

• EBITDA of ₹194 crore with a strong 25.3% margin.

This performance underscores the independent potential of Raymond Realty in India’s fast-growing real estate sector.

Strategic Restructuring by Raymond Group

The demerger of Raymond Realty comes on the back of another key restructuring move — the demerger and listing of Raymond Lifestyle Ltd. in September 2024.

Raymond Group's strategy is aimed at:

• Creating focused verticals to streamline operations

• Unlocking value for shareholders

• Enabling better capital allocation within each business

By spinning off its real estate and lifestyle businesses into separate entities, Raymond Ltd is positioning itself for agile growth and targeted industry-specific strategies.

What Investors Should Know

Many investors were alarmed at the 66% drop in Raymond Ltd’s share price. However, it’s critical to understand:

• This drop is not a real erosion in value but an accounting and structural adjustment due to the demerger.

• Shareholders will now own two companies — each focused on its own core sector.

• Raymond Realty, post-listing, will allow direct participation in India’s growing urban housing and commercial real estate demand.

The key thing to note is that value remains intact — it is now split between two shares.

What Happens Next?

Now that the stock has turned ex-date:

• Investors should expect Raymond Realty Ltd. shares to be credited to their demat accounts soon.

• Listing of Raymond Realty is expected in Q2 FY26, after necessary regulatory and listing formalities.

• Shareholders will then be able to independently trade both Raymond Ltd and Raymond Realty shares.

Broader Market Implications

This move by Raymond Group reflects a broader trend in Indian markets, where large conglomerates are:

• Unlocking value through vertical demergers

• Separating high-growth businesses from legacy units

• Allowing investors to take focused exposure based on sectoral interests

Similar strategies have been seen with Adani Group, Tata Group, and Reliance Industries in recent years.

Conclusion: A Strategic Step, Not a Setback

The 66% fall in Raymond Ltd.’s share price might seem alarming on the surface, but in reality, it represents a strategic recalibration of stock value post-demerger.

Investors now have a stake in two focused, independently functioning entities, with Raymond Realty gearing up for a September 2025 listing.

The move reflects Raymond Group’s long-term vision to unlock value, improve transparency, and streamline operations for better investor confidence.

For investors, this could translate to enhanced long-term growth opportunities, especially with Raymond Realty riding high on a strong real estate performance in FY25.

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