Raymond’s shares began at Rs 1,906 on the NSE, a 39.60% decrease from its closing price of Rs 3,156.10 the day before.
At the opening of trade on Thursday, shares of Raymond Ltd. suffered a precipitous 40% decline. The shares turned ex-date for the demerger of its lifestyle company, which was the reason for this substantial decline.
The value of the stock, deducting the lifestyle business, was being traded. In August or September, the separated and demerged entity will be listed independently on stock exchanges. For every five shares of Raymond that an existing investor has, they will receive four shares of Raymond Lifestyle. The record date for this allocation is today.
Raymond’s shares began at Rs 1,906 on the NSE, a 39.60% decrease from its closing price of Rs 3,156.10 the day before.
The stock made a minor comeback throughout the trading session and was trading at Rs 2,009.80, up 3.07% from the starting price. Prior to the corporate action, MOFSL had valued Raymond Ltd. at Rs 1,415 per share, which included Rs 1,200 per share for the real estate business and Rs 215 for the engineering business. They recommended that the lifestyle company be listed at a price per share of Rs 2,930.
According to InCred Equities, the engineering business is worth Rs 499 per share, the real estate business is at Rs 1,086, and the leisure business is valued at Rs 1,982.
The lifestyle business’s demerger is a component of a bigger scheme. In addition, Raymond plans to demerge its real estate company, a procedure that might take a full year to finish. The engineering business will be the only part of the Raymond corporation that remains after this demerger. Four shares of Raymond Lifestyle are exchanged for every five shares of Raymond in the lifestyle business listing, and one share for every five shares of Raymond in the real estate listing.
