Raymond Shares Tumble 64% in an Hour — But Here’s Why Investors Shouldn’t Panic

Raymond Shares Tumble 64% in an Hour — But Here’s Why Investors Shouldn’t Panic

In a dramatic turn of events, Raymond Ltd’s stock plummeted by over 64% in early trade on May 14, shocking many investors. From its 52-week high of ₹2,380, the stock plunged to a low of ₹523.10, leaving many wondering: What went wrong?

The good news is — this isn’t a sign of trouble for Raymond. The steep fall wasn’t triggered by poor earnings, negative news, or panic selling. Instead, it’s a technical adjustment linked to the company's demerger of its real estate business, Raymond Realty.

Why Did Raymond Shares Fall?

The key reason for the sudden drop is the stock going ex-date for the demerger. May 14 marked the official date when the value of Raymond Realty was separated from Raymond Ltd’s share price. In such cases, the stock adjusts downward to reflect the removal of the spun-off unit — a common and expected market mechanism during demergers.

So, although the share price dropped significantly, investors haven’t lost value — it’s simply been transferred to shares in the new company.

Understanding the Raymond Realty Demerger

• Announcement: Raymond first disclosed the plan to spin off its real estate arm in July 2024.

• Approval: The demerger received the go-ahead from the National Company Law Tribunal (NCLT) in March 2025.

• Ex-date: The stock turned ex-date on May 14, 2025.

• Entitlement: Shareholders will get 1 Raymond Realty share for every 1 Raymond share they held as of the record date.

The listing of Raymond Realty is expected to happen in the September 2025 quarter.

What Should Shareholders Expect?

If you held Raymond shares before May 14, you will soon own shares in two separate companies:

• Raymond Ltd (excluding real estate)

• Raymond Realty (the demerged realty arm)

So, while the price of Raymond Ltd has adjusted downward, you haven’t actually lost value — it has just split across two entities.

Raymond Share Price: Post-Demerger Reaction

Following the technical adjustment, Raymond Ltd hit a new 52-week low of ₹523.10. However, this is in line with the separation of its real estate division and should not be interpreted as a negative performance indicator.

Final Thoughts

This is a classic case of a market technicality, not a company crisis. If you're a shareholder, you still retain full value, just distributed between two stocks. Going forward, investors will be watching how Raymond Ltd performs as a standalone business — and how Raymond Realty fares once it hits the stock exchanges later this year.

Keep an eye on both entities, as the demerger sets the stage for focused growth in both fashion and real estate segments.