Raymond Ltd shares plunge 65% on ex-date for realty biz spinoff: Here's why

Raymond shares were in focus on Wednesday due to the demerger record date for its realty business.  

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Raymond share price declined nearly 66 percent on Wednesday on turning ex-date for the demerger of its real estate business, Raymond Realty. The record date for the demerger was set as Wednesday, May 14 to determine eligibility of the shareholders for the corporate action.

Shares of Raymond Ltd dropped 66.56 percent to Rs 523.10 per share on the NSE against Rs 1,564.30 in Tuesday's closing. After the demerger, the shareholders are set to receive one share of Raymond Realty for every share held in Raymond Ltd, according to the details available on the exchanges after the demerger process was completed on May 1.

The sharp fall in the share price of Raymond Ltd., however, is not a sell-off but in actual is just a price adjustment to reflect the spinoff of the realty arm.

Investors holding shares of Raymond Ltd have not witnessed any fall in the value of their holdings, as the shares have been repriced following the demerger of Raymond Realty. Post-demerger, shareholders will now hold equity in both Raymond Ltd and the newly carved-out Raymond Realty, which will operate as an independent entity.

Raymond Realty is expected to be listed on the National Stock Exchange (NSE) and BSE by the second quarter of the financial year 2025-26. The move is part of Raymond Group's larger strategic overhaul aimed at unlocking value by creating focused verticals. In September 2024, the company had already demerged and listed its lifestyle business as part of this transformation plan.

In April 2025, Raymond Realty signed a joint development agreement in April 2025 to build a residential project in Mumbai, with an estimated revenue potential of Rs 5,000 crore.

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