Raymond shares hit 5% upper circuit as stock turns ex-date for realty demerger

Shares of Gautam Singhania-led Raymond hit 5% upper circuit in early trade on Wednesday as the stock turned ex-date for demerger of the real estate arm - Raymond Realty. The demerger was completed on May 1, and today is the record date for determining eligible shareholders who will receive equity shares in the demerged entity.

“The Demerger of Raymond Realty Limited (RRL) was completed on May 1, 2025, and the Record Date is May 14, 2025, for the purpose of determining the eligible shareholders of Demerged Company (RL) to whom the equity shares of the Resulting Company (RRL) would be allotted in terms of the Scheme,” Raymond said in its March quarter earnings report released on May 12.

As part of the demerger, shareholders will receive 1 share of a face value of ₹10 for every Raymond Realty share they hold in the company. The demerger is part of the group’s strategy to streamline its operations, focus on core competencies, and unlock value for shareholders.

Snapping previous session losses, Raymond shares opened at ₹530 against the previous closing price of ₹1,561.30 on the BSE. In the first hour of trade so far, the smallcap stock gained as much as 5% to hit its upper circuit of ₹556.45, while its market capitalisation increased to ₹3,704.5 crore.

Raymond Realty listing by Sept quarter of FY26

In July 2024, homegrown branded fabric and fashion retailer 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 came into effect on May 1, and shares of Raymond Realty are expected to be listed as a separate entity on both the NSE and the BSE in September quarter of the current financial year.

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.

“We continue to focus on delivering projects within committed timelines. Given our track record of delivering projects ahead of timelines, which has been well appreciated by our customers and resulted in increased customer confidence,” Raymond said in its earnings report on May 12.

The company further stated that it signed two new joint development agreements (JDAs) in Mahim and Wadala, aggregating to a gross development value (GDV) of around ₹6,800 crore. “Both these projects are poised to contribute substantially to our future growth and solidify our presence as a key player in the MMR region.”

With these additions, the total potential revenue from the current real estate business is pegged around ₹40,000 crore, which includes ₹25,000 crore from Thane Land parcel and ₹14,000 crore from JDA led model.

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, the release noted.

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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