Raymond Ltd shares surged to the upper circuit, gaining ₹26.20 (4.99 per cent) to close at ₹551.20, after opening at the same price. The stock was locked at its maximum daily allowable increase following the company’s announcement of its successful real estate business demerger.
The sharp rise reflects investor enthusiasm for the strategic separation of Raymond’s engineering and real estate businesses. However, it’s worth noting that the current share price represents a significant decline of ₹1,013.10 (64.76 per cent) from its issue price, indicating substantial value adjustment following the demerger process.
Raymond Ltd has successfully demerged its real estate business into a separate entity, Raymond Realty Limited (RRL), with the process completed on May 1, 2025, according to a press release issued today. The record date for determining eligible shareholders is May 14, 2025, with shareholders receiving one RRL share for each Raymond Ltd share held.
The engineering business, which now constitutes Raymond Ltd’s continuing operations, reported a 95 per cent year-on-year increase in total income, reaching ₹601 crore for Q4 FY25. This segment’s EBITDA stood at ₹99 crore with a margin of 16.4 per cent, showing 38 per cent growth compared to Q4 FY24.
Meanwhile, the demerged real estate business posted a quarterly revenue of ₹766 crore, a 13 per cent increase from the previous year, with a robust EBITDA of ₹194 crore and margin of 25.3 per cent. The segment secured a booking value of ₹636 crore in Q4 FY25.
Raymond Realty has also expanded its portfolio by signing two additional Joint Development Agreements (JDAs) in Mahim and Wadala with a combined Gross Development Value of approximately ₹6,800 crore. With these additions, the company’s total potential revenue from its real estate business now approaches ₹40,000 crore.
Both companies will remain net cash surplus, with Raymond Ltd holding ₹263 crore and Raymond Realty Ltd possessing ₹399 crore. The newly demerged Raymond Realty is expected to be listed in Q2 FY26.
Published on May 14, 2025
