RAYMOND SHARES SOAR 18% TO FRESH RECORD HIGH ON DEMERGER

Shares of Raymond Limited on Friday rallied over 18% to a fresh 52-week high of Rs 3,480 on BSE after announcing the vertical demerger of its real estate business into its wholly-owned subsidiary Raymond Realty.

Aimed at simplifying corporate structure and enhancing shareholder value for operational and structural benefits, the move will allow independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector's unique dynamics.

Upon completion of this demerger, Raymond Ltd and Raymond Realty Limited (RRL) will operate as separate listed entities within the Raymond Group post all statutory approvals.

The new entity will seek automatic listing on stock exchanges and according to the scheme of arrangement, each Raymond shareholder will receive 1 share of RRL for every 1 share held in Raymond Limited.

The Raymond group has identified three clear vectors of growth - lifestyle, real estate, and engineering.

"This strategy to demerge the Real Estate business into a separate company that will be listed through an automatic route is another step to enhance the shareholder value. The existing shareholders of Raymond Limited will get the shares in the newly listed Real Estate company in a ratio of 1:1," said Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited.

Raymond Realty is among the top 5 developers in the MMR region. It has 100 acres of land in Thane with an 11.4 mn sq ft RERA-approved carpet area of which about 40 acres are currently under development.

The development of Thane Land Bank and the current 4 JDA’s gives the company a potential revenue of Rs 32,000 crore.

Raymond had already approved to demerge its lifestyle business into Raymond Lifestyle while Ray Global Consumer Trading will be amalgamated into Raymond Lifestyle to streamline the group structure. Recently, the National Company Law Tribunal (NCLT) had approved this scheme.