On September 5, shares of Raymond Lifestyle Ltd, a demerged entity from Raymond Ltd, made their debut on the stock exchanges. The stock was listed at Rs 3,020 on the National Stock Exchange (NSE) and Rs 3,000 on the Bombay Stock Exchange (BSE), with an initial market capitalization of over Rs 18,200 crore. However, shortly after listing, Raymond Lifestyle shares dropped 5% to Rs 2,850, hitting the lower circuit.
Raymond Lifestyle includes the retail and lifestyle division of the parent company, Raymond, and its listing is part of a larger restructuring plan aimed at creating three separately listed businesses. This move is expected to unlock shareholder value, as the lifestyle division is now operating independently on Dalal Street.
However, Raymond Ltd shares gained a shade by Rs 2,110 after Raymond Lifestyle began trading. Parent Raymond had demerged the latter in July and the stock has been traded ex-lifestyle business. Listing of Raymond Lifestyle was an important milestone in the restructuring exercise undertaken by Raymond.
The equity shares of Raymond Lifestyle have been settled under the ‘T’ Group on the exchanges, which does not permit intraday trading of the shares and all shares have to be taken into delivery to sell. The stock also attracts a 5% circuit filter for the first 10 trading sessions.
Its board also approved a scheme of arrangement on July 4 to demerge the company’s real estate business into Raymond Realty that would be separately listed after due approvals.
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Source: BT
News Desk
