Raymond Shares Hit Upper Circuit After Trading Ex-Date For Lifestyle Arm Demerger
Raymond Lifestyle will allot four fully paid-up equity shares for every five Raymond shares held.
Shares of Raymond Ltd. saw wild swings in trade on Thursday as the company turned ex-date for the demerger of its lifestyle arm, Raymond Lifestyle Ltd. The counter hit a 5% lower circuit in early trade and later recovered to hit a 5% upper circuit.
Raymond Lifestyle will issue and allot four fully paid-up equity shares with face value of Rs 2 apiece for every five Raymond shares of Rs 10 each. The record date for the spin off is also July 11.
Raymond is also planning to demerge its growing realty business as well. The demerger plan aims to exploit the growth potential of the real estate business and attract a fresh set of investors and strategic partners to participate in it, Raymond said. The current promoter ownership of the Mumbai-based garment maker is 49.01%.
.png)
Raymond's stock rose as much as 5% to hit an upper circuit of Rs 2,001.30 per share on NSE. Thursday's rise is compared to the discovery price of Rs 1,906 apiece, as the realty arm was demerged on the day. This compares to a 0.32% decline in the benchmark NSE Nifty 50 as of 10:59 a.m. The shares earlier hit a 5% lower circuit at Rs 1,810.7 apiece.
The stock has risen 5.14% in the last 12 months and 9.6% year-to-date. The relative strength index was at 31.
Five out of the six analysts tracking the company have a 'buy' rating on the stock, and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 80.2%.
