Raymond Share Price: After the announcement of demerger of real estate business and Raymond Realty Limited by the leading textile company Raymond Limited, the company’s stock saw a sharp jump on the BSE. On Friday, Raymond shares rose more than 18 per cent to a new 52-week high of Rs 3480.
The company had announced the demerger on Thursday with the aim of taking advantage of the growth potential in the real estate segment and ensuring the participation of new investors/strategic partners in the real estate business. Upon completion of this demerger, Raymond Limited and Raymond Realty Limited (RRL) will operate as separate listed entities within the Raymond Group after all statutory approvals.
Following approval of the Scheme of Arrangement of Raymond Limited and Raymond Realty Limited and their respective shareholders, all shareholders will get one share of Raymond Realty in exchange for every one share of Raymond Limited.
Shares will be available in the ratio of 1:1
This strategy of splitting the real estate business into a separate company is a step taken to increase shareholder value. Gautam Hari Singhania, Chairman and Managing Director of Raymond Limited, has said that the existing shareholders of Raymond Limited will get shares in the newly listed real estate company in the ratio of 1:1.
Raymond Realty is one of the top 5 developers in the MMR region. The company has 100 acres of land in Thane with 11.4 million sq ft of RERA-approved carpet area. Development work is underway on about 40 acres of land. The company gets revenue of about Rs 32,000 crore from the Thane land bank and existing 4 JDA developments.
Raymond had already approved the separation of its lifestyle business into Raymond Lifestyle. At the same time, Ray Global Consumer Trading will be merged with Raymond Lifestyle to streamline the group structure. Recently, the National Company Law Tribunal (NCLT) approved this plan.