Concerned about the substantial drop in stock prices due to investor concerns stemming from the family dispute, Gautam Singhania, chairman and managing director of Raymond, has sent an email to the company’s board and employees, assuring them that challenges in his personal life wouldn’t impact the group’s businesses.
The communication is intended to alleviate concerns arising from Gautam Singhania’s estranged wife, Nawaz Modi, asserting a claim to 75% of the industrialist’s estimated $1.4 billion wealth for their two daughters and herself as part of a family settlement.
“I am steadfast to create and deliver value to all our shareholders and ensure the interests of our employees, customers, and other stakeholders,” he said in the email.
Raymond did not comment on the subject.
The Raymond stock has witnessed a consistent decline over the past nine trading sessions, with the stock losing 13.3%, compared with a 1.4% gain in the Nifty. This decline has resulted in the erosion of nearly ₹1,700 crore in stockholder wealth, reflecting concerns raised by investors over the latest developments.
“A family dispute among the promoters will always pose a threat, impacting the company and its performance,” said Shriram Subramanian, Founder & CEO of InGovern Research. “However, the impact will depend on the outcome of the division, and hence minority investors should exercise caution and monitor this event closely.”
After more than two decades of marriage, billionaire industrialist Gautam Singhania publicly announced on November 13 separation from his wife, Nawaz, on X (formerly Twitter).
On Nov 20, ET was the first to rep-ort that Nawaz had sought 75% of Gautam’s net worth for her two da-ughters, Niharika and Nisa, and he-rself as part of a family settlement.
“As the media is rife with news about matters pertaining to my personal life, I am writing to you to say that I have chosen not to comment on the same, as maintaining the dignity of my family is paramount to me,” added Gautam Singhania.
He stated that he will remain resolute as chairman and managing director and is fully committed toward the smooth functioning of the company and its business. “Even in these difficult times for me, I assure you that at Raymond, it is business as usual.”
