EduInvesting.in | May 15, 2025
If you opened your brokerage app and saw Raymond Ltd down 66%, you probably dropped your phone faster than they dropped trousers in their 90s ads.
But relax. This isn’t a crash. It’s a corporate detox. Raymond didn’t lose ₹1,000 in value overnight. It simply shed some weight — in the form of real estate.
Welcome to the world of demergers — where stocks get a glow-up by breaking up.
🧾 What Just Happened?
Raymond Ltd, the textile-to-everything conglomerate, officially spun off its real estate arm, Raymond Realty, on May 14, 2025.
- Shareholders received 1 share of Raymond Realty for every 1 share of Raymond Ltd.
- The stock price adjusted from ₹1,561 to ₹530, reflecting the removal of the realty business.
- People panicked anyway, because maths is hard.
So yes — the “66% crash” is not a real loss, it’s a technical adjustment. Just like when your salary looks smaller after tax — but your net worth’s unchanged (unless you bought
crypto).
🏗️ What’s This Raymond Realty Hype?
Turns out, Raymond isn’t just good with suits — it’s also been killing it in skyscrapers.
- Q4 FY25 revenue: ₹766 crore
- EBITDA: ₹194 crore (25.3% margin)
- Total development pipeline: ~₹40,000 crore
- ₹25,000 crore from its Thane mega-land
- ₹14,000 crore from Mahim, Bandra, Wadala via JDAs
If you ever saw a massive tower next to Raymond’s factory in Thane and thought, “Is this a fashion empire or a city-state?” — you weren’t wrong.
📉 Why the Crash Looked So Scary
Because:
- The price dropped.
- People didn’t read.
- Financial literacy continues to be underfunded.
When a company demerges a profitable arm, its stock price reflects the smaller, remaining business. You
