Site icon

Raymond demerger

raymond demerger

Raymond demerger

Raymond Shares Trade Ex-Lifestyle Business From Today; Here’s What Lies Ahead

After the demerger, all businesses are expected to be net debt-free. The lifestyle business will have net cash of ₹200 crore, while the real estate business is expected to have cash of ₹500 crore.

Raymond Shares Plunge Over 35% on Demerger Day

Today marks the official execution of Raymond Ltd.’s demerger into two separate entities. During a board of directors meeting held a week ago, the demerger received official approval.

In a dramatic turn of events, Raymond Ltd. saw its shares drop significantly in the early hours of the trading session. The Mumbai-based company’s shares plummeted by nearly 40% early on Thursday, July 11.

Raymond Gears Up for Demerger

The company is set to split into Raymond Ltd. and Raymond Realty Limited (RRL). This newly separated entity will be listed on the NSE a month after the official demerger. Current shareholders will receive shares in both companies once they are listed.

This significant decline follows a period of substantial gains for Raymond shares. Over the past few weeks, the company’s shares increased in value, hitting a 52-week high of ₹3,496.00 per share. The prices rose from ₹2,161.80 on June 5 to ₹3,208.65 by July 5. On July 5 alone, a day after the crucial board meeting on July 4, the shares surged by over 15%.

Shares Plunge on Demerger Day

The new entity, Raymond Realty Limited, will be separately listed on the NSE a month after the demerger. This transition has led to increased demand for shares, driving their prices up significantly.

However, this trend halted abruptly on the official demerger day, July 11. On this day, Indian equities traded in relatively stable territory, but Raymond Ltd. shares dipped by over 39%. By 10:42 IST, the shares were valued at ₹2,001.30, reflecting a massive decline of 36.04% or ₹1,127.70. Despite a slight recovery, the shares remained significantly down from their peak.

Shareholders and market analysts will be closely watching the performance of both Raymond Ltd. and Raymond Realty Limited in the coming months to gauge the long-term impact of this strategic move.

Homepage

Source

 

Exit mobile version