Weak start for Raymond Realty as shares fall 4% on debut; parent Raymond ends 7% higher

Raymond Realty, the demerged real estate arm of Raymond, made a weak debut on the domestic bourses on Tuesday. Shares of Raymond Realty Ltd (RRL) were listed at ₹1,000 apiece on the NSE, reflecting a 3.75% discount to the discovered price of ₹1,039. On the BSE, the stock debuted at ₹1,005 per share, down 2.55% from the discovered price of ₹1,031.30.

Post listing, Raymond Realty shares touched an intraday high and low of ₹1,050 and ₹950, respectively, on the NSE. On the BSE, the counter hit a day’s high and low of ₹1,055.20 and ₹954.75, respectively.

Finally, RRL shares ended the first day of trade at ₹999, down 3.84% against the discovered price on the NSE, with a market capitalisation of ₹6,650.72 crore. On the BSE, the stock settled at ₹976.50 apiece, down 6.67%.

On the other hand, Raymond shares ended on a strong note at on the BSE, up 6.75%, with a market capitalisation of ₹5,037.30 crore. During the session, the apparel stock gained as much as 10% to hit an intraday high of ₹771.40, with more than 32 lakh shares changing hands over the counter.

With its listing, RRL has become a pure-play real estate entity, backed by a ₹40,000 crore development pipeline through a 100-acre owned land bank, and a growing portfolio of joint development agreements (JDAs) and led by over 400 member strong professional management team.

RRL well-positioned to sustain 20% annual growth: CEO Harmohan Sahni

On listing, Harmohan Sahni, MD & CEO, Raymond Realty said, “At Raymond Realty, we’re building more than just homes and we’re shaping India’s urban skyline. Our branded offerings, TenX, The Address by GS, and Invictus by GS, are testament to our differentiated customer-first approach across aspirational, premium, and luxury segments.

“With a net debt-free balance sheet, 100 acres of owned land, and a capital-efficient joint development model, we are well-positioned to sustain 20%+ annual growth and industry-leading ROCE of over 20%. This will help in further solidifying our position in Indian real estate industry,” Sahni said.

As per the company, the listing aimed at unlocking shareholder value by creating a focussed, net debt free pure-play real estate entity. The strategic move will allow greater operational efficiency, sharper market focus, and enhanced investor value creation.

The listing is being seen as an important milestone for the group as it progresses with the Raymond 2.0 transformation and has demonstrated the continued value unlocking by demerging its lifestyle business last year, the release noted.

Speaking on Raymond’s 2.0 vision, Gautam Hari Singhania, Group Chairman, Raymond said, “As Raymond Group steps into its next century, our focus on creating Raymond 2.0 will help us continue our legacy into a dynamic, purpose-driven and future ready enterprise reflecting our commitment to innovation, execution excellence, and nation-building.

“Guided by our three distinct business entities—Lifestyle, Real Estate, and Engineering, Raymond Realty is equipped with professional management team and a strong board with rich pedigree of real estate sector. As Raymond Group marks a century of its operations, we are committed to deliver exceptional customer experiences, long-term sustainable growth, and enhanced value for our shareholders,” he added.

In July 2024, Raymond announced the demerger of the real estate business, which was approved by the National Company Law Tribunal (NCLT) in March this year. The demerger was completed on May 1.

As part of the demerger, shareholders of Raymond were offered 1 shares of a face value of ₹10 of Raymond Realty for every 1 share they hold in the company.

For the March quarter of FY25, the real estate business delivered revenue of ₹766 crore compared to ₹677 crore in the year ago period, recording a growth of 13%. On the operating front, EBITDA stood at ₹194 crore in Q4 FY25 from ₹171 crore in the same period last year. The EBITDA margin was at 25.3% in Q4FY25.

In Q4 FY25, the company achieved a booking value of ₹636 crore, primarily driven by demand for The Address by GS 2.0, Invictus & Park Avenue – High Street Retail in Thane and in JDA 'The Address by GS' in Bandra. The real estate business will also be net cash surplus with ₹399 crore.

Raymond forayed into realty sector in 2019 through the launch of its maiden project Ten X Habitat spread across 14 acres housing around 3,100 residential units.

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