Raymond Realty Demerger: Independent Listing on NSE & BSE Unlocks Shareholder Value
Raymond Ltd recently demerged its real estate arm, Raymond Realty, in a move that came into effect on May 1, 2025, with May 14 set as the record date for shareholders.
Under the scheme, existing Raymond shareholders will receive one share of Raymond Realty for every one share held in Raymond Ltd.
The intent behind this spin-off is to enable Raymond Realty to operate and be valued independently, helping unlock value for both the real estate business and the parent company
Financially, Raymond Realty enters the market with strong credentials. In Q4 FY25, the company achieved revenue of about ₹766 crore, up ~13% year-on-year, with an EBITDA of ₹194 crore and an EBITDA margin of ~25.3%.
Its booking value in that period stood at ~₹636 crore, notably without launching any new projects during the quarter.
The business strategy is also aggressively growth-oriented, with joint development agreements (JDAs) in areas like Mahim and Wadala adding fresh development pipeline, pushing the total revenue potential to ~₹40,000 crore.
Finally, the listing of Raymond Realty is expected in early July 2025, marking its debut on both the NSE and BSE. The market reacted strongly: Raymond Ltd shares plunged ~66% on the ex-date (a technical adjustment reflecting the demerger), but those losses were not real value losses for shareholders, who now hold shares in both entities.
Investors and analysts seem broadly optimistic: brokerage forecasts have set target prices for Raymond Realty shares ranging up to ₹1,383, expecting solid future growth, strong margins, and value unlocked through focused operations.