Raymond Lifestyle shares hit 5% lower circuit after listing at ₹3,020 apiece on NSE

According to the exchange data, the stock listed at ₹3,020 per share and hit a high of ₹3,100 after the listing on NSE.

However, Raymond Lifestyle Ltd (RLL) shares failed to hold the momentum and reversed gains in the first 30 minutes of trade. The stock retreated to hit its lower circuit at ₹2,869, down 5% from the listing price, on the NSE. More than 1.24 lakh shares changed hands on the exchange.

RLL made its market debut at ₹3,000 on BSE. The stock hit a high of ₹3,100 per share before retreating by 5% to hit its lower circuit at ₹2850 on the bourse.

The stock later trimmed its losses to trade 2.88% lower at ₹2,018.7 apiece on the NSE, at 10:30 am.

Raymond shares started trading ex-RLL demerger from July 11, 2024. Under the scheme of arrangement, Raymond shareholders will get four shares of Raymond Lifestyle for every five of Raymond (4:5).

Experts had said that Raymond Group was demonstrating positive actions by selling the FMCG business, demerging the lifestyle business, restructuring the real estate business and demerging it, and establishing an engineering unit after the Maini Precision (MPPL) acquisition.

The listing of Raymond Lifestyle Ltd is the first step of the demerger of Raymond Group into three listed entities.

Raymond Group CFO Amit Agarwal's take on Raymond Lifestyle demerger

Raymond Group demerger creates three entities

Raymond Lifestyle Ltd houses branded textile, branded apparel, garmenting and high value cotton shirting businesses having total sales turnover of more than ₹7,000 crore in FY 2023-24. RLL houses brands like Park Avenue, Color Plus and ethnix.

The realty business under RRL with total sales turnover of ₹1,600 crore in FY24 has assets like Thane land Development and joint development projects in MMR region.

Thane land development has revenue potential of more than ₹25,000 crore while four JDA in MMR region have revenue potential of ₹7,000 crore. The realty business under RRL will be listed later. The share exchange ratio for the realty business stands at 1:1.