Shares of Raymond Lifestyle Ltd debuted on the stock exchanges on Thursday, following the demerger of its retail and lifestyle businesses from Raymond Group. The stock was listed at Rs 3,000 on the BSE and quickly climbed 3.33 per cent to Rs 3,100. At the National Stock Exchange (NSE), the shares opened at Rs 3,020.
However, the initial gains were short-lived, as the stock later hit the lower circuit limit, falling 5 per cent to Rs 2,850 on the BSE. A similar pattern was observed on the NSE, where it hit the lower circuit at Rs 2,869, also down 5 per cent. The company’s market valuation during morning trade stood at Rs 17,363.23 crore.
The listing of Raymond Lifestyle follows the company’s announcement earlier this week. In a release on Tuesday, the company confirmed that it would begin trading on the exchanges on September 5. Following the demerger, Raymond will operate as two separate listed entities.
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Raymond Lifestyle, which focuses on retail and lifestyle, plans to expand aggressively by opening 900 new outlets over the next three years. The company is targeting a 15 per cent Compound Annual Growth Rate (CAGR) and aims to capture around 7 per cent of the men’s-wear wedding market by 2027.
Speaking on the demerger, Raymond Group Chairman and Managing Director Gautam Singhania said, "The demerger aims to unlock shareholder value by creating a focused lifestyle business entity. Raymond Lifestyle will sharpen its strategic focus in this fast-growing sector and aims to become one of the top three global fabric suppliers by the end of this year.” Singhania added that global opportunities, particularly challenges in China and Bangladesh, along with trade agreements with the UK, EU, and Australia, present significant growth prospects for the company.
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