{"id":56346,"date":"2025-05-15T13:16:24","date_gmt":"2025-05-15T07:46:24","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=56346"},"modified":"2025-07-24T15:53:44","modified_gmt":"2025-07-24T10:23:44","slug":"raymond-ltd-tanks-66-after-realty-demerger-4-key-facts-investors-must-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/raymond-ltd-tanks-66-after-realty-demerger-4-key-facts-investors-must-know\/","title":{"rendered":"Raymond Ltd. Tanks 66% After Realty Demerger: 4 Key Facts Investors Must Know"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><\/p>\n\n\n\n<p>Not every day, a company\u2019s share price drops over 60% in a single trading session. When Raymond Ltd saw its stock crash nearly 66.56% on May 15, it raised some eyebrows. The plunge looked dramatic from \u20b91,564.30 at Tuesday\u2019s close to \u20b9523.10 on Wednesday. But before jumping to conclusions, here\u2019s what happened.<\/p>\n\n\n\n<p>This sharp fall does not result from a market sell-off or negative sentiment around the company. It\u2019s a notional price adjustment due to Raymond Realty&#8217;s demerger, which now becomes a standalone entity. If you hold Raymond shares, this change doesn\u2019t mean you\u2019ve lost value\u2014it just means your investment is now split between two companies instead of one.<\/p>\n\n\n\n<p>Let\u2019s break this down step-by-step so you can understand what triggered the fall, what the demerger means, and what lies ahead.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcb-0dOegfrLIyo6aEAVOEElpJif68Wuwkt4krf-qIkdNCl7Z5zGMR3FFSox4c1maPoQ6nSuZQYfUVYTAQ-KIl_coVoHbB3aEktAnkq4Jc0xAjlw6STU67Z9WO8PeFYYkKT9yMd?key=LCfG_Sz-4QwkeFS5WePVVw\" alt=\"\" style=\"width:566px;height:auto\" title=\"\"><figcaption class=\"wp-element-caption\"><strong>Source: <\/strong><a href=\"https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=RAYMOND\" target=\"_blank\" rel=\"noopener\"><strong>NSE<\/strong><\/a><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>1. Why Did Raymond Ltd Shares Crash 66%?<\/strong><\/h2>\n\n\n\n<p>The sharp drop in the <a href=\"https:\/\/www.equentis.com\/blog\/reading-stock-charts-the-basics\/\">stock price<\/a> was triggered by the ex-date of the demerger, the day when Raymond Ltd officially split from its realty arm, Raymond Realty. The <a href=\"https:\/\/www.equentis.com\/blog\/ex-date-vs-record-date\/\">record date<\/a> for this <a href=\"https:\/\/www.equentis.com\/blog\/what-is-corporate-action-meaning-types-tax-implications\/\">corporate action<\/a> was May 14, meaning investors who held shares on that date will receive shares of the Realty once it is listed.<\/p>\n\n\n\n<p>Here\u2019s how the math works:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Before the demerger, Raymond Ltd. included lifestyle and real estate businesses in its valuation. With Raymond Realty carved out, the mother brand&#8217;s remaining value dropped to reflect only its lifestyle and other operations. The 66.56% drop reflects the notional adjustment, not an actual investment loss. <\/li>\n<\/ul>\n\n\n\n<p>Some trading platforms still show unadjusted data, making the drop appear steeper than it truly is. Importantly, shareholders will now own one share of Raymond Realty for each share of Raymond Ltd they held on the record date. So, the price has dropped, but the value hasn\u2019t disappeared\u2014it has simply been split between two separate business units.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>2. Realty Debuts With Strong Financials<\/strong><\/h2>\n\n\n\n<p>The Realty arm isn\u2019t starting from scratch. The company enters this new chapter with a net cash surplus of \u20b9399 crore and solid financial performance. Here are some key numbers from the March 2024 quarter: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Revenue:<\/strong> \u20b9766 crore (up 13% YoY) <\/li>\n\n\n\n<li><strong>EBITDA:<\/strong> \u20b9194 crore <\/li>\n\n\n\n<li><strong>EBITDA Margin:<\/strong> 25.3% <\/li>\n<\/ul>\n\n\n\n<p>The demand for Raymond Realty\u2019s projects in the Mumbai Metropolitan Region (MMR) continues strong. For Q4, the company reported a booking value of \u20b9636 crore, driven by projects like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Address by GS 2.0 <\/strong><\/li>\n\n\n\n<li><strong>Invictus <\/strong><\/li>\n\n\n\n<li><strong>Park Avenue \u2013 High Street Retail in Thane  <\/strong><\/li>\n\n\n\n<li><strong>The Address by GS in Bandra <\/strong><\/li>\n<\/ul>\n\n\n\n<p>This shows that Raymond Realty is entering the listed space with momentum, clear market demand, and visibility.<br><strong>Source:<\/strong><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/raymond-shares-crash-66-here-are-4-things-you-need-to-know-as-realty-arm-demerger-kicks-in\/articleshow\/121154103.cms?from=mdr\" target=\"_blank\" rel=\"noopener\"><strong> Economic Times<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>3. Expansion Through JDAs to Unlock \u20b940,000 Cr Potential<\/strong><\/h2>\n\n\n\n<p>Raymond Realty also scales its business through Joint Development Agreements (JDAs). These strategic tie-ups allow it to expand without owning all the land outright, a capital-efficient model gaining traction in Indian real estate.<\/p>\n\n\n\n<p>In Q4 FY24, the company signed new JDAs in Mahim and Wadala, adding approximately \u20b96,800 crore in potential Gross Development Value (GDV).<\/p>\n\n\n\n<p>Let\u2019s look at the broader picture:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Thane land parcel potential: \u20b925,000 crore <\/strong><\/li>\n\n\n\n<li><strong>JDA-led projects potential: \u20b914,000 crore <\/strong><\/li>\n\n\n\n<li><strong>Total GDV potential: \u20b940,000 crore<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This positions Raymond Realty as a serious Mumbai real estate market contender. The model focuses on high-value urban locations with strong growth potential, sharpening its MMR focus.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>4. Raymond Realty Listing by Q2 FY26<\/strong><\/h2>\n\n\n\n<p>Following the demerger, Raymond Realty will operate independently and is expected to list on both <a href=\"https:\/\/www.equentis.com\/blog\/national-stock-exchange-of-india-functions-features-and-top-companies\/\">NSE<\/a> and <a href=\"https:\/\/www.equentis.com\/blog\/explore-bombay-stock-exchange-what-is-bse-advantages-of-listing-and-investment-methods\/\">BSE<\/a> by the second quarter of FY26 (July\u2013September 2025). Until then, shareholders will hold the entitlement for the new company, which will be reflected in their demat accounts once the listing is complete.<\/p>\n\n\n\n<p>This is part of Raymond Group\u2019s larger strategy of building focused verticals. In September 2024, the company had already demerged and listed its lifestyle business, reinforcing the group\u2019s direction toward unlocking value across business units.<\/p>\n\n\n\n<p>The standalone listing of Raymond Realty will allow markets and investors to evaluate the business independently, with its own earnings, risks, and growth trajectory, free from the valuation complexities of a conglomerate structure.<br><strong>Source:<\/strong><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/raymond-shares-crash-66-here-are-4-things-you-need-to-know-as-realty-arm-demerger-kicks-in\/articleshow\/121154103.cms?from=mdr\" target=\"_blank\" rel=\"noopener\"><strong> Economic Times<\/strong><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><strong>It\u2019s a Structural Realignment, Not a Panic Signal<\/strong><\/h3>\n\n\n\n<p>Remember, the 66% fall in Raymond Ltd\u2019s stock is a technical outcome of a corporate restructuring, not a market panic. Here\u2019s what you, as an investor or market observer, should take away:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The fall is notional, driven by a price adjustment post-demerger.  Shareholders will receive shares in Raymond Realty, a profitable and growing real estate firm. The realty arm starts strong, with a net cash position, robust bookings, and growth momentum. A focused business model and upcoming listing could unlock more transparency and clarity. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>What Does This Mean for Shareholders?<\/strong><\/h2>\n\n\n\n<p>In simple terms, while Raymond Ltd\u2019s share price has dropped, shareholders haven\u2019t actually lost value. Instead, that value has shifted to another basket\u2014Raymond Realty. If you held shares in Raymond before the record date of May 14, you\u2019re now eligible to receive shares of Raymond Realty once it gets listed on the stock exchanges.<\/p>\n\n\n\n<p>The new spin-off will debut on the NSE and BSE by the September 2025 quarter (Q2 FY26). Until then, your investment is essentially split. Raymond Ltd continues to trade with its core operations, and Raymond Realty will soon begin trading independently, reflecting its financials and market position.  <strong>Source: <\/strong><a href=\"https:\/\/www.financialexpress.com\/market\/raymond-shares-plunges-64-in-1-hour-find-out-why-it-is-not-a-big-worry-and-watch-out-for-3844188\/\" target=\"_blank\" rel=\"noopener\"><strong>Financial Express<\/strong><\/a><\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>The 66% drop in the share price reflects a structural change, not a loss in value. With Raymond Realty set to operate independently and list by Q2 FY26, shareholders now hold stakes in two focused entities. The demerger aligns with the group\u2019s strategy to unlock value through clearer business verticals, allowing investors to assess each arm on its own operational and financial performance going forward.<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-a377517bdd8f600e0c2e7efd2ef366fd\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis \u2013 Research &amp; Ranking. We will not be liable for any losses that may occur. <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI<\/a>, membership of BASL &amp; certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s not every day that a company\u2019s share price drops over 60% in a single trading session. When Raymond Ltd saw its stock crash nearly 66.56% on May 15, it understandably raised some eyebrows. From \u20b91,564.30 at Tuesday\u2019s close to \u20b9523.10 on Wednesday, the plunge looked dramatic. But before jumping to conclusions, here\u2019s what actually happened.<\/p>\n","protected":false},"author":25,"featured_media":56353,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948,9],"tags":[],"class_list":["post-56346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=56346"}],"version-history":[{"count":11,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56346\/revisions"}],"predecessor-version":[{"id":58097,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56346\/revisions\/58097"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/56353"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=56346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=56346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=56346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}