Raymond shares debut at 4% discount on NSE after demerger

On July 1, 2025, Raymond Realty—the real estate arm demerged from Raymond Ltd—made its market debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It started at a 4% discount on the NSE before rallying, while the parent company’s stock soared in anticipation. Let’s unpack what happened, why it matters, and what investors should watch next.

What Exactly Happened?

NSE debut: Opened at ₹1,000, compared to the discovery price of ₹1,039.30, signaling a 3.8–4% discount .
BSE debut: Opened at ₹1,005, versus the discovery price of ₹1,031.30, a 2.5% discount .
Immediate action: The shares surged to hit the 5% upper circuit, closing around ₹1,050–₹1,055 on both exchanges .
End of the day: However, the listing cooled off—shares closed near ₹999 on the NSE and ₹976.50 on the BSE, roughly 3.8–6.7% below discovery prices .

Why the Discount?

IPO-less debut: It was a pure demerger, not a traditional IPO—thus, price discovery often starts lower.
Cautious trading: Analysts like SEBI-registered Rajneesh Sharma noted that lower volumes and initial uncertainty typically cause discount starts .
Basic supply-demand: Selling pressure from shareholders who wanted immediate liquidity could have driven the price below the discovery level.

Why It Reached Upper Circuit

Pent-up demand: Despite the discount, investors quickly snapped up the stock, pushing it to the 5% daily limit on both NSE and BSE .
Optimism on growth: Brokerages like Ventura see huge upside—targeting ₹1,383 and highlighting the asset-light model and strong revenue pipeline .

Parent Company Reaction

Raymond Ltd shares rallied 7–9% on the news, reaching highs above ₹771 on BSE .
The parent company’s three-day rally brought the total gain to over 24%, reflecting positive investor sentiment about the value unlocked by the demerger .

Financial Strength of Raymond Realty

FY25 Revenue: ₹2,313 crore (+45% YoY)
Q4 FY25 EBITDA: ₹194 crore (+13% YoY); FY25 EBITDA: ₹507 crore (+37% YoY)
Future pipeline: Six upcoming residential projects in Mumbai MMR, including major JDAs, totalling ₹14,000 crore potential revenue
Broking targets:
- SBI Securities sees fair listing range of ₹897–1,430
- Ventura projects ₹1,383 (DCF, FY28)

Context: The Broader “Raymond 2.0” Strategy

In May 2025, Raymond split its realty arm—May 1 was effective date, May 14 record date—alongside the earlier lifestyle demerger .
The 66% dip in parent share price on May 14 was a notional technical adjustment, not a loss—reflecting separation of asset value .
The demergers are part of a strategy to create pure-play companies in real estate, lifestyle, and engineering—unlocking investor value and adding transparency .

What Investors Should Watch

Volume trends: Will volumes pick up? Sharma suggested this will indicate real demand direction.
Parent stock movement: Continued upward momentum may validate the restructuring.
Booking & EBITDA milestones: Upcoming Q1 FY26 metrics and project presales will be crucial.
Broader market trends: As real estate stocks shift, peer comparison will matter.

Final Take

The 4% discount at listing reflects typical IPO-less demerger caution. Yet, the 5% upper circuit spike, strong financials, and broker forecasts point to solid long-term upside.

For shareholders, the demerger unshackles real estate value and creates transparency across verticals. Monitoring volumes and future presales will be vital in judging whether initial enthusiasm translates into sustained investor confidence.

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