Raymond Lifestyle shares list with 93 percent premium on NSE after demerger, lower circuit after listing

by times news cr

2024-09-06 08:36:55
New Delhi: Raymond Lifestyle’s stock filled the investors’ pockets on the very first day. This company was separated from its parent company Raymond Limited in June this year and today its stock was listed on the stock exchanges. The company’s stock was listed at Rs 3,020 on NSE and Rs 3,000 on BSE. Its base price was Rs 1,562.65 and it was listed with a 93% premium. With this, the company’s market cap reached around Rs 18,300 crore. After listing, the company’s stock reached the lower circuit limit of 5%. The reason for this was that early investors booked profits. Raymond Group had separated its lifestyle business as part of the restructuring process. Four shares of Raymond Lifestyle were given for every five shares in Raymond. Ventura Securities has given the company a valuation of Rs 30,000 crore. This means a target price of Rs 4,927 per share. Ventura Securities said that in the last four years before the demerger, Raymond’s management team has transformed the entire business. The company has not only become debt-free before the deadline but also has cash reserves of Rs 200 crore.

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Raymond’s Profit

The company has projected 12-15% revenue growth in the lifestyle business. Also, EBITDA is expected to double to more than Rs 2,000 crore by FY 2028. Raymond plans to open more than 350 stores. Currently, the number of its stores is 114. Ventura analysts said that in FY 2024-27, revenue from wedding will grow at a rate of 19.2% annually to Rs 4,192 crore. EBITDA will also grow 17.7% annually to Rs 895 crore. Raymond’s profits have jumped manifold in the first quarter.

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