Shares of Raymond surged by 7.1% in early trading on Friday, reaching an intraday high of ₹1,528.9 on the BSE. This increase came after exchanges granted approval for the company's proposed demerger of its real estate business. The move highlights the growing opportunities for those considering share market investment, with Raymond continuing to position itself for long-term growth.
At around 10:27 AM, the stock was trading at ₹1,507.4, marking a 5.67% gain, while the broader BSE Sensex also showed positive movement. The company's market capitalisation was reported at ₹10,035.32 crores.
Details of the real estate demerger
Raymond's board had earlier approved the separation of its real estate business into a new entity, Raymond Realty Limited. Upon completion, both Raymond Ltd and Raymond Realty will operate as independent entities under the group. As part of the arrangement, shareholders will receive one share of Raymond Realty for every share held in Raymond Ltd. This strategic step aligns with the company's efforts to unlock greater value for those engaged in share market investment.
Raymond Realty has significant real estate assets, including approximately 100 acres of land in Thane, with about 40 acres under development. The business reported revenue of ₹1,593 crore for FY24, a 43% year-on-year growth, and achieved an EBITDA of ₹370 crore, setting a strong foundation for its future operations as a standalone company.
Strengthening shareholder value
The demerger strategy focuses on creating a clearer growth roadmap for the group, now segmented into three core verticals: lifestyle, real estate, and engineering. By separating its real estate operations, Raymond aims to streamline its structure and maximise shareholder returns.
For investors exploring share market investment, the move offers a distinct opportunity to benefit from the growth potential of both Raymond Ltd and Raymond Realty as standalone entities.
The newly formed Raymond Realty will seek a listing on stock exchanges, further enhancing transparency and accessibility for investors. This decision reflects the company's commitment to strengthening shareholder value while leveraging its established market presence.
Future growth prospects
Raymond Realty is well-positioned to expand its footprint in the real estate sector with significant ongoing and planned projects. Its focus on premium residential and commercial developments aligns with broader market trends, offering promising prospects for those invested in the share market.
In the past year, Raymond's stock performance has seen fluctuations, but the approval of the demerger has injected optimism. For those considering share market investment, this development highlights the potential for growth and profitability within Raymond's diversified business model.
By reshaping its corporate structure, Raymond aims to cater to evolving market demands and deliver sustainable value, providing an attractive opportunity for long-term investors.
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