New Delhi: Shares of Raymond Limited surged by 4.5 per cent to Rs 2,037 on the BSE during Thursdays intra-day trade, outperforming an otherwise weak market. This significant gain follows the companys transition to an ex-date for its lifestyle business. At 11:05 AM, Raymond shares were trading 3.7 per cent higher at Rs 2,022, compared to its post-demerger discovery price, while the Sensex declined by 0.33 per cent. However, Trading commenced at Rs 1,950The trading for Raymond commenced at Rs 1,950 on the BSE after a special pre-open price discovery session between 09:45 and 10:00 AM. The companys demerger of its lifestyle business into Raymond Lifestyle, formerly known as Raymond Consumer Care, has been a key factor influencing the stock movement.Share prices following demergerRaymond had designated July 11, 2024, as the record date for the demerger. Shareholders of Raymond will receive four equity shares of Raymond Lifestyle, each valued at Rs 2 and fully paid-up, for every five equity shares of Raymond, each valued at Rs 10 and fully paid-up, held as of the record date.A 40 per cent drop The initial trading session on Thursday saw a sharp 40 per cent drop in Raymonds stock price due to the stock turning ex-date for the demerger of its lifestyle business. This corporate action is part of Raymonds strategic move to unlock value for its shareholders.Demerger will create two new entities Raymonds demerger aims to create two distinct listed entities: Raymond Lifestyle and Raymond. Post-demerger, Raymond will retain its real estate and engineering businesses. The group has sold its fast-moving consumer goods (FMCG) business and identified Lifestyle, Real Estate, and Engineering as its core growth pillars. The demerger is intended to enhance shareholder value and position the company for future growth.In its FY24 annual report, Raymond stated, With the demerger of the Lifestyle business into a separate entity, the parent company, Raymond, will now focus on Real Estate and Engineering businesses. This corporate action, with the intent to further increase shareholder value, brings us to the cusp of a new beginning.
