Raymond Ltd. Shares Plunge on Demerger Day
In a surprising twist, Raymond Ltd., headquartered in Mumbai, experienced a steep drop in its share prices right at the start of trading on Thursday, July 11. The company’s shares took a nosedive of nearly 40%.
Background on Demerger Decision
Interestingly, this decline coincides with the company’s decision to split into two separate entities: Raymond Ltd. and Raymond Realty Limited (RRL). This move was officially approved during a recent board meeting of directors.
Recent Share Performance
Just a few weeks ago, Raymond Ltd. enjoyed a significant upward trend in its share price. The stock had reached a high of Rs 3,496.00 per share within the past year, climbing from Rs 2,161.80 on June 5 to Rs 3,208.65 by July 5. Notably, on July 5, following a crucial board meeting on July 4, the shares surged by over 15%.
Anticipation and Market Response
Ahead of the demerger, anticipation was high as Raymond Ltd. and RRL were set to be separately listed on the NSE, scheduled for a month after the demerger process. Shareholders would automatically receive shares in both new entities upon listing, likely contributing to increased demand and boosting share prices in the lead-up.
♦Read More| Overview of Emcure Pharmaceuticals IPO
Day of Demerger Impact
However, on the actual day of the demerger, despite overall stability in the Indian stock market, Raymond Ltd. shares unexpectedly plummeted by more than 39%. By 10:42 AM IST, the share price had settled at Rs 2,001.30, marking a significant decrease of 36.04% or Rs 1,127.70.
This sharp decline highlights the uncertainties and complexities associated with corporate restructuring events like demergers. Such events can unpredictably influence investor sentiment and affect shared values in ways that are not always immediately apparent.
One thought on “Raymond Ltd. Shares Plunge on Demerger Day”