Raymond Share Price Plunges 66% on Ex-Date of Realty Demerger — But Here’s Why Investors Shouldn’t Panic

Raymond Ltd shares witnessed a sharp plunge of nearly 66% on May 14, falling from ₹1,564.30 to ₹523.10 per share on the NSE. But before investors hit the panic button, it’s crucial to understand the real reason behind this dramatic drop — and why it’s not a sell-off, but a technical price adjustment due to the Raymond Realty demerger.

What Triggered the Raymond Share Price Drop?

The steep fall came as Raymond turned ex-date for its real estate business demerger, marking a significant restructuring move by the company. The record date for the demerger was also May 14 — set to identify eligible shareholders who would receive shares of the newly demerged Raymond Realty.

For every share held in Raymond Ltd, investors will now receive one share of Raymond Realty, according to official filings on the exchanges. The demerger process was completed on May 1, 2025, and the price correction is simply a market mechanism to reflect this structural shift.

It’s Not a Loss – Just a Repricing

Although the Raymond stock dropped 66.56%, the actual value of investors’ holdings hasn’t declined. The fall only reflects the removal of Raymond Realty’s value from Raymond Ltd’s stock. The value is now split between two separate companies — Raymond Ltd and Raymond Realty — both of which shareholders will own moving forward.

“The sharp fall in Raymond’s share price is not a sign of panic selling but a price adjustment post-demerger,” as analysts reiterated.

Raymond Realty will now function as a standalone firm, bringing better clarity and focus to its real estate operations. This move is part of the Raymond Group’s broader strategic transformation aimed at creating focused verticals and unlocking value for shareholders.

What’s Next for Raymond Realty?

Raymond Realty is expected to be listed on the NSE and BSE by Q2 of FY25–26, offering shareholders the opportunity to track and trade it independently. In fact, Raymond Realty has already been making strategic moves, such as a joint development agreement in April 2025 to build a premium residential project in Mumbai, with an estimated revenue potential of ₹5,000 crore.

This is not the first such strategic realignment by the Raymond Group. In September 2024, the company had demerged and listed its lifestyle business, laying the groundwork for its current transformation.

Final Takeaway for Investors

If you hold shares in Raymond Ltd, there’s no cause for concern. You still hold the same value — only now it’s split between Raymond Ltd and Raymond Realty. With both companies set to pursue focused growth strategies, this demerger could unlock long-term shareholder value.

Raymond’s stock drop is simply a reflection of the demerger, not a fall in business performance.

As Raymond Realty gears up for its official listing, and with strong real estate developments in the pipeline, investors will be closely watching how this new chapter unfolds for the group.