Raymond Shares Surge Over 7% After Realty Demerger Gets Green Light; BSE, NSE Grant 'No Objection' Letter

Raymond Limited shares on Friday (November 22) surged over 7 per cent after the company on November 21 received a 'no objection' letter from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for the demerger and listing of its realty arm, Raymond Realty.

By 12:28 PM IST, the shares of the company were trading at Rs 1,529.20 apiece, up by 7.20 per cent. The company stocks after the announcement began the next trading session on a strong note.

Raymond shares today opened at Rs 1,450 apiece and propelled to hit a high of Rs 1,535.80 during the intraday trading session. The 52-week high of the shares stood at Rs 3,493.00 apiece on BSE.

The sharp rally comes as Raymond Realty moves closer to becoming an independent entity listed on the stock exchanges.

The Demerger

The demerger of Raymond and Raymond Realty, approved by the board on July 4, 2024, is part of a larger strategy to streamline the group’s operations and enhance shareholder value. Once listed, both entities will operate as standalone companies.

Under the scheme, shareholders of Raymond Limited will receive one share of Raymond Realty for every share they hold.

Raymond confirmed the regulatory nod in its BSE filing on November 21. It stated, "The Board of Directors of RL had approved the Scheme of Arrangement of Raymond Limited (the ‘Demerged Company’ or ‘RL’) and Raymond Realty Limited (the ‘Resulting Company’ or ‘RRL’) and their respective shareholders (‘Scheme’), subject to receipt of applicable regulatory approvals.In this regard, we would like to inform you that BSE and NSE, vide their letters dated November 21, 2024, have issued their Observation Letters as required under Regulation 37 of the Listing Regulations with ‘No adverse observation/ No objection’, to the proposed Scheme."

Financial Highlights

The company in the financial year 2024 revenue stood at Rs 1,593 crore, marking a 43 per cent year-on-year growth. Moreover, its earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 370 crore.