Raymond share: 66% fall! Why stock bled amid Raymond Realty demerger

Raymond Shares Crash 66% Post Realty Demerger: Here’s What Happened

Raymond share: 66% fall

 Updated May 14, 2025, 9:58 AM IST

Raymond stock takes a hit

Shares of Raymond Ltd plunged 66% in early Wednesday trade, falling to ₹530 from the previous close of ₹1,561.30, as the stock turned ex-date following the demerger of its real estate arm, Raymond Realty. The sharp fall reflects the exclusion of the real estate business from Raymond’s financials post-demerger.

The demerger of Raymond Realty officially took effect on May 1. Today marks the record date to determine eligible shareholders who will receive equity shares in Raymond Realty. According to the demerger terms, shareholders will be allotted one Raymond Realty share for every share of Raymond Ltd they hold.

Listing timelines and earlier spin-offs

This follows a similar corporate restructuring last year when Raymond demerged and listed its lifestyle business, Raymond Lifestyle, in September 2024. The real estate business is expected to be listed by the September 2025 quarter.

It’s worth noting that certain mobile trading apps may still be displaying the unadjusted Raymond stock price, making the 66% drop appear more alarming than it actually is.

Raymond Realty: Performance snapshot

In Q4 FY25, Raymond Realty recorded a booking value of ₹636 crore, supported by key projects such as The Address by GS 2.0, Invictus, and Park Avenue – High Street Retail in Thane, along with the JDA project The Address by GS in Bandra.

  • Revenue: ₹766 crore (up 13% YoY)

  • EBITDA: ₹194 crore

  • EBITDA margin: 25.3%

  • Net cash surplus: ₹399 crore

Raymond Realty is aggressively expanding beyond its Thane base, signing two new joint development agreements (JDAs) in Mahim and Wadala valued at a combined ₹6,800 crore. This brings its tally to six projects outside Thane, solidifying its presence across the Mumbai Metropolitan Region (MMR).

Leadership speaks

“This strategic move emphasizes our commitment to driving sustainable growth through focused, pure-play businesses and enhancing shareholder value,” said Gautam Hari Singhania, Chairman and Managing Director of Raymond.

He added that the company continues to strengthen its JDA-driven expansion model and remains focused on timely project deliveries.

Looking ahead

The Raymond Realty demerger is a calculated step aimed at unlocking value, improving operational efficiencies, and leveraging its substantial land bank to capitalise on growth opportunities in India’s competitive real estate sector.

As the dust settles on the stock adjustment, analysts and investors will now closely track Raymond Realty’s independent journey and its potential to emerge as a major player in the real estate space.