Raymond stock took a sharp 65% hit this week, but don’t panic. This dramatic fall isn’t about poor performance or market panic. It’s all about a planned spinoff of its real estate business.
Here’s the deal: Raymond’s realty arm is being carved out into a separate company—Raymond Realty. Investors who held shares before the ex-date (the cut-off date for eligibility) will receive shares in the new company when it lists, expected by the September quarter of FY26. Those who bought after the ex-date? You only get the new “Raymond,” minus the real estate.
Why should the average investor care?
Because this isn’t just another price crash. It’s a textbook example of how corporate actions like spinoffs can look dramatic—but are really just accounting in action. What looks like a huge loss is just the market adjusting to a split.
Here’s how it works:
- Value Shift: Raymond’s real estate business had real weight in its overall value. Now that part is being pulled out and re-listed separately.
- Price Reset: Since the realty chunk is no longer part of Raymond, the stock price dropped to reflect the new, smaller company.
- Split Assets: If you held shares earlier, your investment is now split across two firms—Raymond and Raymond Realty. Same pie, just sliced differently.
Sure, a 65% drop makes headlines. But this isn’t a company collapsing. It’s a company reorganizing.
What now?
If you owned Raymond stock before the ex-date, don’t panic. You’ll soon receive shares in the new real estate business. The combined value may remain close to what you originally invested. Now, you hold a stake in two separate companies—and that’s not a bad thing.
If you bought after the ex-date, you’re investing in Raymond minus the real estate play. That means focusing on its core strengths: textiles and apparel.
Things to watch next:
- Raymond Realty’s listing: Watch how the new stock performs after it hits the market. Its valuation, projects, and delivery record will matter.
- Raymond’s core business: Can it thrive without the realty arm? Will it double down on textiles and sharpen focus?
- Overall market mood: Broader market trends and sector outlook will influence both stocks.
The bigger picture?
Spinoffs aren’t new in Indian markets. Companies like Reliance and Adani have done it. The real lesson here is understanding that a falling stock price isn’t always bad news—especially when it’s tied to value being reallocated, not lost.
So no, Raymond didn’t just crash. It evolved. And if you look closely, it might be an opportunity, not a red flag.
Disclaimer: This article is for information only and not financial advice. Please do your own research or speak to a financial advisor before making any investment decisions. Views are based on public info available at the time.
