July 11, 2024
New Delhi, India
Raymond Demerger
Raymond Ltd. experienced a significant drop in its share price, plummeting by nearly 40% in early trading hours on Thursday, July 11, coinciding with its scheduled demerger.
Demerger Details
The Mumbai-based company officially approved the demerger of its operations into two separate entities: Raymond Ltd. and Raymond Realty Limited (RRL). Shareholders of Raymond Ltd. will automatically receive shares in both entities once Raymond Realty Limited is separately listed on the NSE, expected a month post-demerger.
Market Performance
Despite recent weeks of substantial gains, with shares reaching a high of Rs 3,496.00 on July 5 from Rs 2,161.80 on June 5, Raymond Ltd. saw a dramatic reversal on demerger day. The stock, which surged by over 15% following a crucial board meeting on July 4, experienced a sharp decline to Rs 2,001.30 by 10:42 IST, marking a staggering 36.04% drop.
Also Read: Ambey Laboratories Shares Debut with 25% Premium on NSE SME
Implications and Future Outlook
The sudden downturn underscores market volatility surrounding corporate restructuring events. While Raymond Ltd. aims to streamline operations through demerger, investors reacted sharply on the execution day. The company’s future performance will likely hinge on market sentiment and operational efficiencies post-demerger.
At the time of writing this article Raymond shares were doing at 2,001.30 INR down −1,127.70 at 2:03 P.M.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
