2024-07-06 02:00:29
New Delhi: Amidst the decline in the stock market, shares of Raymond Ltd rose sharply today. The company’s stock rose by more than 18% on the BSE to Rs 3484.00, which is its 52-week high. The company has announced a vertical demerger of its real estate business into Raymond Realty Limited (RRL). Due to this, the company’s shares saw a sharp rise. After this demerger, Raymond Limited and Raymond Realty Limited will operate as separate listed companies. At 3 pm, it was trading at Rs 3273.95 with a gain of 11.29%. The new company will seek automatic listing on the stock exchanges. According to the plan, Raymond shareholders will get one share of RRL for every share of Raymond Limited. The group has identified three sectors for growth – lifestyle, real estate and engineering. Gautam Singhania, President and MD of Raymond Limited, said that this strategy of separating the real estate business into a separate company is another step towards increasing shareholder value. Existing shareholders of Raymond Limited will get shares in the newly listed real estate company in the ratio of 1:1.
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Raymond Realty Business
Raymond Realty is one of the top 5 developers in the Mumbai Metropolitan Region. It has 100 acres of land in Thane. It has a RERA-approved carpet area of 11.4 million sq ft. Of this, development work is currently underway on about 40 acres of land. The development of the Thane land bank and the existing 4 JDAs will generate potential revenues of Rs 32,000 crore for the company. Raymond has already approved the demerger of its lifestyle business into Raymond Lifestyle. Ray Global Consumer Trading will be merged into Raymond Lifestyle. Recently, the National Company Law Tribunal (NCLT) approved the plan.