Why Raymond Shares Plummeted 40% Today and What Lies Ahead
Raymond shares opened at Rs 1,906 on the NSE, marking a significant drop of 39.60% from the previous day's closing value of Rs 3,156.10. According to MOFSL, the estimated per share value of Raymond Ltd post the recent corporate action was set at Rs 1,415.
Shares of Raymond Ltd nosedived 40% at open on Thursday as the stock turned ex-date for the demerger of its lifestyle business. The stock was trading at a value excluding the lifestyle business, which has been separated and will be listed separately on stock exchanges around August-September. Existing investors of Raymond will be offered four shares of Raymond Lifestyle for every five Raymond shares they hold. Today is the record date for this demerger.
On Thursday, Raymond shares opened at Rs 1,906 on the NSE, marking a significant 39.60% drop from the previous day's closing value of Rs 3,156.10. However, the stock gained momentum as the session progressed, later trading at Rs 2,009.80, up 3.07%.
MOFSL had earlier estimated the per share value of Raymond Ltd at Rs 1,415 post the corporate action, which included Rs 1,200 per share for the real estate segment and Rs 215 for the engineering business. They suggested that the Lifestyle business could be listed at Rs 2,930 per share.
InCred Equities provided their own estimates, valuing the lifestyle business at Rs 1,982 per share, the realty business at Rs 1,086 per share, and the engineering business at Rs 499 per share.
This significant market movement follows the stock turning ex-date for the demerger of Raymond's lifestyle business. The lifestyle business has been separated and is expected to be listed separately on stock exchanges around August-September. Existing investors of Raymond will receive four shares of Raymond Lifestyle for every five Raymond shares they hold, with today being the record date for this transaction.
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