Shares of Raymond skyrocketed 18.5 percent to hit a record high on July 5 after the board approved demerger of its real estate business, Raymond Realty.
At 11.02 am, shares of Raymond were trading at Rs 3,392.45 on the NSE, off its record high of Rs 3,484.
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's 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.
After completion, Raymond Realty will be listed on both the National Stock Exchange and BSE as a separate entity.
Follow our live blog for all the market action
"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.
Last year, Raymond had demerged its lifestyle business to Raymond Consumer Care in an effort to become debt free. The lifestyle business consisted of the suiting business with manufacturing plants, B2C shirting, branded apparel and subsidiaries including garmenting business and B2B shirting.
Read More | Raymond board approves plan for real estate business demerger
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
