Shares of Raymond Lifestyle were tanking on Thursday after it was listed in the bourses following its demerger with its parent firm Raymond.

What Happened: Raymond Lifestyle plunged 5% to hit the lower circuit after being listed on the BSE and NSE in an IPO-less debut for the stock. The company’s shares debuted at a listing price of ₹3,000 per share on the BSE.

On the NSE, the shares were listed at a slightly higher price of ₹3,020 per share. The shares were listed at a premium of 99.5% above its base price of ₹1,503.3 per share.

With the listing of Raymond Lifestyle today, the Raymond Group will have two publicly traded companies for now: Raymond Lifestyle will focus exclusively on the consumer-branded apparel and textiles sector, with four main segments- wedding and ethnic wear, garment exports, branded apparel, and textiles.

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Raymond had also revealed plans for a vertical split to separate its real estate business into a separate entity. Raymond Realty will be listed on stock exchanges after necessary statutory and regulatory approvals, the company said earlier this week.

“The demerger aligns with Raymond Group’s stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits,” the company had said in July. The move will enable independent management teams with specialised industry knowledge to focus more on each business and customise investment strategies to fit the specific needs of each sector, the company added.

After the completion of all formalities for both the schemes of arrangement, the Raymond Group will have three listed entities: Raymond, Raymond Lifestyle and Raymond Realty.

Price Action: Shares of both Raymond companies were down on Thursday morning.

Raymond Lifestyle crashed 5% to trade at ₹2,869 while Raymond lost 3.12% to trade at ₹2,013.70.

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