In a dramatic turn of events, Raymond Ltd. saw its shares drop significantly in the early hours of the trading session. The Mumbai-based company's shares dropped by close to 40 per cent in the early hours of the day's trade on Thursday, July 11.
Raymond Gears Up For Demerger
This is also the day that the company is set to officially execute the demerger of its company into two separate entities. In a board of directors meeting held a week ago, the official approval of the demerger of the existing company was given.
The company would split into Raymond Ltd. and Raymond Realty Limited (RRL).
This newly separated entity will be separately listed on the NSE a month after the official de-merger. This deal also meant the current shareholders of the company would automatically get shares in two separate companies when both entities were listed. |
This rapid slump or decline comes after days of monumental gains that the company shares made. In the past few weeks, the company shares have risen in value. The shares hit a 52-week high of Rs 3,496.00 per share. The prices rose from Rs 2,161.80 on June 5 to Rs 3,208.65 a month later, on July 5.
In fact, on July 5 alone, a day after the crucial board meeting on July 4, the company shares rose by over 15 per cent.
Shares Drows On Demerger Day
This newly separated entity will be separately listed on the NSE a month after the official de-merger. This deal also meant the current shareholders of the company would automatically get shares in two separate companies when both entities were listed.
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The shares, however, appear to have made a marginal discovery. Despite the said discovery, the value of the shares at 10:42 IST stood at Rs 2,001.30, having declined by a colossal 36.04 per cent or a whopping Rs 1,127.70. |
This may have led to a surge in the demand for shares and a subsequent surge in their prices as well.
This phenomenon appears to have come to a grinding halt on the official day of the de-merger, July 11.
On the day, Indian equities traded in relatively stable territory, and Raymond Limited shares dipped by over 39 per cent. The shares, however, appear to have made a marginal discovery. Despite the said discovery, the value of the shares at 10:42 IST stood at Rs 2,001.30, having declined by a colossal 36.04 per cent or a whopping Rs 1,127.70.
