Why Raymond Share Price Just Skyrocketed: Reason of Increase, The Inside Story!

Raymond share price surged 13.01% on September 4, 2024, reaching ₹2,179.70 on the NSE. This spike came as investors reacted to the upcoming listing of Raymond Lifestyle, part of the company’s significant demerger plan. Raymond Group confirmed that after this demerger, there will be three separate listed entities: Raymond Limited, Raymond Lifestyle Limited, and Raymond Realty Limited.

This move is seen as transformative for the company, which is famous for legacy brands like Park Avenue, Raymond, Parx, and ColorPlus. Earlier this year in July, Raymond share price hit a fresh 52-week high of ₹3,480 on the BSE after announcing the vertical demerger of its real estate business into Raymond Realty, a wholly-owned subsidiary.

Raymond had informed the stock exchanges on July 4, 2024, that the Board of Directors had approved this demerger scheme. The demerged entity, Raymond Realty Limited, will be listed on the stock exchanges once it receives the necessary regulatory approvals. This strategic move is designed to simplify the corporate structure and allow each segment to focus on its core business, which investors saw as a positive development.

Adding to the excitement, Gautam Singhania, Chairman of Raymond Group, tweeted about a major milestone. He announced that the National Company Law Tribunal (NCLT) has approved Raymond’s composite scheme of arrangement and restructuring. This approval includes the demerger of Raymond’s lifestyle business and the amalgamation of its consumer trading arm, marking a new chapter of growth and opportunity for the company. The details of this approval were also covered in an article by The Economic Times, shared by Singhania on Twitter.

We have achieved a significant milestone in Raymond Group’s journey as the National Company Law Tribunal (NCLT) approves our strategic demerger and amalgamation, marking a new chapter of growth & opportunity for us.

This means a fresh, focused corporate structure is on the… pic.twitter.com/zou9VhTmah

— Gautam Singhania (@SinghaniaGautam) July 19, 2024

The rise in Raymond Share Price reflects investor excitement about Raymond’s new structure, which is expected to unlock more value for shareholders. By having focused management teams for each business, Raymond aims to sharpen its business strategy and boost operational efficiency.

In the stock market, Raymond’s stock has been on a steady climb throughout the year. On June 21, 2024, the stock jumped 12% in intraday trading, reaching a record high of ₹2,694.95. This 81% increase from its 52-week low of ₹1,487 on December 1, 2023, was fueled by a strong business outlook and recent acquisitions, positioning Raymond for long-term growth.

Analysts are particularly bullish about Raymond Lifestyle, which is expected to list in the first week of September 2024. The company is targeting a doubling of its EBITDA to over ₹20 billion by FY28, with a projected sales growth of 12–15% in the lifestyle sector. These positive forecasts have driven investor confidence, contributing to the recent surge in Raymond Share Price.

Raymond’s strategic decisions are clearly paying off, making it a stock to watch as the company continues to evolve.