Raymond drops 10% on land deal in early trade

The shares of Raymond dipped 10 per cent in early session on Thursday after Institutional Investor Advisory Service conveyed that over Rs 650 crore loss can occur to the company and also its shareholders from the proposed land deal.

The land deal proposes that about Rs 9,200 per square feet will be paid for four duplexes with a total carpet area of 22,400 square feet by the Singhania family.

The annual general meeting is expected to be held on June 5 seeking the approval of shareholders for the sale of real estate asset in Mumbai to its promoters.

The Institutional Investor Advisory Service’s valuation report states that the value of residential property is Rs 1,17,000 per square foot and pegging the value at Rs 710 crore can lead to a loss in earning per share (EPS) of Rs 4 to the company.

The Raymond stock, however, recovered to close at Rs 680.15, up by Rs 16.80 or 2.53 per cent on the BSE.