Gautam Singhania-Nawaz Modi dispute continues to drive 12-day decline in Raymond shares

Raymond Group's shares have witnessed a continuous decline for the 12th consecutive day amid the protracted divorce settlement dispute between chairman and managing director Gautam Singhania and his estranged wife Nawaz Modi. The share price dropped over 2 per cent to Rs 1,509.70 apiece at 12:35 pm. Over the past five trading sessions, the shares have fallen by 10.6 per cent, and in the last month, the decline has been over 14 per cent. In the last 12 trading sessions, the stock has experienced a 20 per cent decline, marking the longest losing streak in the company's recorded history.

As a result of this decline, Raymond's market capitalization is at risk of falling below the Rs 10,000 crore mark. The ongoing dispute has reportedly unsettled shareholders, leading to a Rs 2,500 crore reduction in market capitalization over the course of just 12 sessions.

Several experts from proxy advisory firms have raised concerns about potential losses for Raymond's shareholders if the settlement battle between Singhania and Modi proceeds to court. Institutional Investor Advisory Services (IiAS), a proxy advisory firm, has urged independent directors of Raymond to initiate an investigation into allegations of assault against CMD Gautam Singhania, made by his estranged wife Nawaz Modi. IiAS has also suggested considering the appointment of an interim CEO.

Nawaz Modi detailed the alleged assault incidents in a recent interview with India Today TV, prompting IiAS to emphasize the importance of addressing such serious accusations. The advisory firm has expressed concern about the significant erosion in stock price and called for action from Raymond’s independent directors.

In response to these developments, Gautam Singhania has refrained from commenting on the matter publicly. In an internal email to employees and board members, he asserted that the ongoing challenges in his personal life have not affected Raymond’s operations, emphasizing the paramount importance of maintaining the dignity of his family.