Raymond share price rises up to 10% on plans of vertical Demerger of its Real Estate Business

Stock Market Today: Raymond share price gained up to 10% during morning trades on Friday as the company announced vertical Demerger of its Real Estate Business

The Raymond share price opened at ₹3050, 3.7% higher than previous close of ₹2940.05 thereby gained more than 10% to high of ₹3240 on the NSE on Friday.

On Thursday post market hours, Raymond had announced Vertical demerger of  its Real Estate Business, leading to gains in Raymond share prices on Friday

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Raymond Limited in its release announced its plans on vertical demerger of its Real Estate Business into its wholly owned subsidiary, Raymond Realty Limited (RRL). It further added that upon completion of this demerger, Raymond Ltd and Raymond Realty Limited (RRL) will operate as separate listed entities within the Raymond Group post all statutory approvals.

 The new entity will seek automatic listing on stock exchanges and according to the scheme of arrangement, each Raymond Ltd (RL) shareholder will receive 1 share of RRL for every 1 share held in Raymond Limited.

In its presentation for investors Raymond Ltd said that is a step towards shareholder value creation . The Raymond Real Estate Business has achieved scale & size and in FY24 reported Revenue of ₹1,593 crore (43% YoY Growth) and Earning before interest tax depreciation and amortisation (Ebitda) at and ₹370 Crore and is well poised to chart its own growth path as a separate entity.

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The Simplification of the group structure will help enhance value through operational and structural benefits whilst continuing to leverage Raymond’s institutional strength and brand equity.

A Independent, dedicated management with requisite skillset teams will sharpen business focus basis industry specific dynamics and investment strategies.

In the Real Estate Segment Raymond Thane land Development in itself has more than ₹25,000 Crore revenue potential

Joint Development Agreement in MMR Region where there are   4 Joint Development Projects have revenue potential of more than ₹7000 Crore are per the company release

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