Raymond shares hit record high on nod to demerger of real estate business

Shares of Raymond Ltd hit a record high today after the board of the conglomerate approved demerger of its real estate business, Raymond Realty. Raymond stock rose 18.3% to a record high of Rs 3480.35 against the previous close of Rs 2941.90 on BSE today. Total 2.03 lakh shares of the firm changed hands amounting to a turnover of Rs 65.13 crore. Market cap of the firm climbed to Rs 22,593 crore on BSE.   

Raymond stock opened higher at Rs 3035.95 today. Raymond has a one-year beta of 0.8, indicating low volatility during the period.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 68.9, signaling the stock is neither overbought nor oversold on technical charts. Raymond shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.  Shares of Raymond have gained 96.42 per cent in a year and risen 97 per cent in 2024. 

The demerger plan aims to consolidate the conglomerate's entire real estate business into a single entity to leverage growth opportunities and attract new investors and strategic partners, Raymond said.

Under the demerger plan, Raymond will issue 6.65 crore shares of Raymond Realty with a face value of Rs 10 per share. Shareholders of Raymond will receive one share of Raymond Realty for each share held with no cash or alternative considerations involved.

 Subsequently, Raymond Realty will make its market debut on both the National Stock Exchange and BSE as a separate company.

"This strategic move comes as Raymond's Real Estate Business has achieved scale, reporting revenue of Rs 1,593 crore (43 percent on year growth) and EBITDA of Rs 370 crore in FY24, positioning it well to chart its own growth path as a separate entity," the company stated in an exchange filing.

"Raymond Realty has 100 acres of land in Thane with 11.4 mn sq ft RERA approved carpet area of which about 40 acres is currently under development. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank," it added.