Raymond is obviously the toast of the Street today. The stock opened over 3% higher at Rs.3035.95 and surged further to hit a new 52-week high at Rs.3480.35, up more than 18%.

The stock hit a new high after the Board approved demerger of its real estate business, to be known Raymond Realty.

The idea behind this demerger is to consolidate its entire real estate business into a single entity to leverage growth opportunities and attract new investors and strategic partners.

The company said that as per the demerger plans, Raymond will issue

6.65 crore shares of Raymond Realty with a face value of Rs 10 per share.

Shareholders of Raymond will receive one share of Raymond Realty for each share held with no cash or alternative considerations involved.

Raymond Realty, on completion, will be listed on both the National Stock Exchange and BSE as a separate entity.

Raymond Realty has 100 acres of land in Thane with 11.4 mn sq ft RERA approved carpet area of which about 40 acres is currently under development. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank.