Raymond shares hit 5% upper circuit three days in row; What's behind surge?

Raymond shares were locked into 5 per cent upper circuit in trade on Friday, May 16, 2025, at ₹613.45 per share on BSE. For the third consecutive session, Raymond share price hit the upper band post the ex-date for demerger of its real estate business on May 14, 2025. 

 

The ex-date for a demerger is when the parent company's shares begin trading without the entitlement to receive shares of the newly demerged (spun-off) entity.

 

At 9:53 AM, Raymond shares were up 5 per cent at ₹4,636.55 per share on the BSE. In comparison, the BSE Sensex was down 0.25 per cent at 82,327.16. The market capitalisation of the company stood at ₹4,083.97 crore. The 52-week high of the stock was at ₹1,243.51 per share and the 52-week low of the stock was at ₹431.1 per share. 

Why are Raymond shares hitting back-to-back upper circuits? 

In July, Raymond Ltd proposed to demerge its realty business which was approved by the company's board. After the demerger, plan was to create two separate listed entities-- Raymond Ltd and Raymond Realty. 

 

The spin-off was aimed at unlocking the value for shareholders and harness growth potential in the Indian property market. 

 

In November, the company received a no objection certificate (NOC) from the BSE and the National Stock Exchange (NSE) for the demerger of its real estate business. Post the demerger, the new company, Raymond Realty (RRL), will be listed on both the stock exchanges after obtaining the necessary approvals.

 

Raymond Realty will issue over 67 million equity shares having a face value of ₹10 each to the equity shareholders of Raymond, after the demerger. According to the company’s stock exchange filing, “Further, upon allotment of equity shares by Raymond Realty, the entire pre-scheme paid-up share capital of Raymond Realty held by Raymond shall stand cancelled, and the paid-up share capital of Raymond Realty to that effect shall stand cancelled and reduced, without any consideration.” 

Raymond Q4 results

In Q4, the company's consolidated net profit stood at ₹137.47 crore as compared to ₹229.79 crore a year ago. Its revenue from operations stood at ₹557.46 crore as against ₹266 crore a year ago.