Raymond Lifestyle Stock Debut: Shares List at Rs 3,020, Market Cap Hits Rs 18,200 Cr
Raymond Lifestyle Limited (RLL), the demerged retail and lifestyle division of Raymond Ltd, made its much-anticipated debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Thursday, September 5, 2024. The company’s shares were listed at Rs 3,020 on NSE and Rs 3,000 on BSE, with a total market capitalization exceeding Rs 18,200 crore.
The listing marks a significant milestone in Raymond’s scheme of arrangement, which aims to eventually have three separate listed businesses: Raymond Limited, Raymond Lifestyle Limited, and Raymond Realty Limited. This move is expected to unlock shareholder value and provide investors with a focused play on India’s wedding and ceremonial market.
Main Points
Key Highlights of Raymond Lifestyle’s Debut
- Shares listed at Rs 3,020 on NSE and Rs 3,000 on BSE
- Total market capitalization exceeds Rs 18,200 crore
- Shares fell 5% to hit the lower circuit of Rs 2,869 on debut
- Raymond Ltd shares also fell around 1% on the day
| Performance Metric | Value |
|---|---|
| Today’s Low | 2,869.00 |
| Today’s High | 3,100.00 |
| Open | 3,020.00 |
| Prev. Close | NA |
| Volume | 1,41,317 |
| Total Traded Value | 40.54 Cr |
| Upper Circuit | 3,171.00 |
| Lower Circuit | 2,869.00 |
Analysts’ Take on Raymond Lifestyle’s Valuation and Growth Potential
Analysts are bullish on Raymond Lifestyle’s growth prospects, with InCred Equities projecting a 12-15% growth between FY24-FY28. The company’s management has set an ambitious target of doubling its EBITDA to Rs 2,000 crore in the next three years.
Raymond Lifestyle’s facility in Vapi, Gujarat, which spans 112.6 acres and contributes 45% to the suiting segment’s revenue, is a key asset. The company plans to invest an additional Rs 100 crore in FY25 to increase its production capacity, which is expected to generate Rs 400 crore of incremental revenue by FY27.
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Betting on an Extended Wedding Season
Raymond Lifestyle is anticipating high demand during an extended wedding season this year, which should result in strong sales in the second half of this fiscal. The company’s Chairman, Gautam Singhania, stated that the wedding season is strong, and the coming 6-9 months should drive strong growth.
The company is preparing to ramp up its portfolio and expand its retail presence to capture demand this festive and wedding season. Raymond Lifestyle has set a revenue growth target of 12-15% over the next 3-5 years, with a targeted EBITDA of Rs 2,000 crore by FY28.
Expansion Plans and Focus on Power Brands
Raymond Lifestyle plans to add 900 more stores to increase its presence across cities. The company also aims to expand its exclusive brand outlets (EBOs) through an asset-light model, with a target of opening 250-300 stores for each brand over the next three years. Between FY21-FY24, Raymond Lifestyle clocked a strong sales growth of 35%, reaching its lifetime high sales of Rs 700 crore, led by its renewed strategy post-Covid and the focus on growing its power brands.
Demerger and Debt-free Status
The demerger of Raymond lifestyle business into a separate company was exercised as part of the value unlocking for the company’s shareholders. The sale of the company’s non-core business and demerger of the lifestyle and real estate business has made Raymond a debt-free company.
