Raymond’s 66% Share Price Plunge Explained: Here’s What’s Really Going On

Raymond Ltd’s stock took a nosedive on Wednesday, plummeting 66% to ₹530 from the previous day’s ₹1,561.30. But before panic sets in, it’s crucial to understand: this sharp drop isn’t a market meltdown, it’s a technical adjustment tied to a major corporate move.

What Caused the Steep Drop?

The sudden plunge in Raymond’s share price stems from the company’s demerger of its real estate arm, Raymond Realty. The record date for the split was May 14, and starting that day, the stock began trading ex-demerger. This means the value of the real estate business has been carved out from the parent company’s valuation.

So, no, investors haven’t suddenly lost two-thirds of their money. Instead, they now hold equity in two companies: Raymond Ltd (core business) and Raymond Realty, which is now an independent entity.

Raymond Realty: Stepping Out Strong

Raymond Realty is entering the market with robust financials. Operating mainly in the Mumbai Metropolitan Region (MMR), it closed the March quarter with:

• Revenue of ₹766 crore (up 13% YoY)
• EBITDA of ₹194 crore
• Healthy EBITDA margin of 25.3%
• Cash surplus of ₹399 crore

Its Q4 booking value hit ₹636 crore, thanks to popular projects like The Address by GS 2.0, Invictus, and Park Avenue – High Street Retail in Thane.

Scaling Big with Joint Development Agreements

Raymond Realty is expanding operations through Joint Development Agreements (JDAs), a model that allows growth without upfront land purchases. In Q4, the company signed new JDAs in Mahim and Wadala, with a potential gross development value of ₹6,800 crore.

The real estate division now has an estimated revenue potential of approximately ₹40,000 crore, including:

• ₹25,000 crore from Thane land parcels
• ₹14,000 crore through JDAs

When Will Raymond Realty Be Listed?

The newly minted real estate company is on track to list separately on the NSE and BSE by Q2 of FY26 (by September 2025). This will allow investors to track its performance and valuation independently of Raymond Ltd.

This move follows Raymond’s broader strategic shift. The company had earlier demerged and listed its lifestyle division in September 2024, showcasing its intent to unlock value by creating focused, standalone businesses.

Conclusion

The sharp fall in Raymond’s share price may seem alarming at first glance, but it's important to recognize it as a technical adjustment following the demerger of Raymond Realty not a loss in real value for shareholders.

With Raymond Realty set to operate as an independent, financially stable entity and its listing expected by Q2 FY26, investors will now be able to assess and track both companies separately. This move is a part of Raymond Group’s broader strategy to streamline its operations and unlock shareholder value through focused business verticals.

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