Shares of Raymond Ltd climbed 9 per cent in Tuesday's trade as a Bloomberg report suggested that the nearly century-old Indian conglomerate, the Raymond Group, was aiming to list its apparel and real estate units by the end of 2025. To recall, Raymond Ltd shares started trading ex-Lifestyle business last month and the listing of the demerged business on bourses is likely this week, probably on September 5. Stock exchanges BSE and NSE have sought clarification from Raymond following the Bloomberg report.
Shares of Raymond climbed 8.61 per cent to hit a high of Rs 2,180.85 on BSE. The scrip has climbed 16 per cent in the past two weeks and 24 per cent year-to-date. "The exchange has sought clarification from Raymond Limited with respect to recent news item captioned A century old Raymond Group is planning 2 listings by end of 2025. The response from the Company is awaited," NSE said.
Raymond has earlier hinted at demerging its real estate business as well, which analysts said could consume 15-18 months period. After completing the demerger process, the Raymond entity would comprise only the Engineering business.
"We attended an investor conference of Raymond Lifestyle (RLL), which is expected to be listed on stock exchanges on 5th Sep’24. The company reiterated its guidance of 12-15% revenue growth and doubling Ebitda to Rs 2,000 crore by FY28 (i.e. 19 per cent CAGR) in the lifestyle business. This, along with a reduction in working capital to 60 days, should result in FCF generation of Rs 600-700 crore annually," MOFSL said.
On Raymond's real estate business, Antique Stock Broking in July said the business is going strong with the Pokhran Road project already an established landmark project in Thane. With steady business development under the asset-light model, it expects Raymond Realty to continue with 25 per cent CAGR in sales booking with embedded Ebitda margin of over 30 per cent.