In a significant turn of events, the announcement of the separation between Gautam Singhania, Chairman of Raymond Ltd., and his wife Nawaz Singhania has led to a substantial financial impact on the company. Since November 13, when Singhania declared the separation after 32 years of marriage, Raymond’s stock has witnessed a notable decline, plummeting by 12% and wiping out more than $180 million in market value.
The share prices further fell by 4.4% on Wednesday, marking the most substantial drop since October 25. Raymond Ltd., renowned globally as a major producer of suit fabric, has faced a seven-day consecutive decline in Mumbai, fueled by the uncertainty stemming from the high-profile separation.
Reports from The Economic Times suggest that Nawaz Singhania is seeking 75% of Gautam Singhania’s $1.4 billion fortune as part of a settlement. Despite these reports, a representative for the Raymond Group has not yet responded to inquiries seeking comment on the matter.
Analysts express concerns about the uncertainty surrounding the separation, emphasizing its potential impact on the company. With Nawaz Singhania being a board member, the situation is perceived as a corporate governance issue, further contributing to the apprehension among investors.
Varun Singh, an analyst at ICICI Securities Ltd., remarked, “Uncertainty around the separation is weighing on the stock. Nobody knows what kind of impact it will have on the company.” Singh initiated coverage on the stock with a hold recommendation on November 20. As of now, the company holds seven buy ratings and no sell ratings, according to data compiled by Bloomberg.
The ongoing developments in the personal lives of the Singhanias have evidently spilled over into the financial realm, creating a ripple effect that continues to capture the attention of investors and industry observers alike.
For more updates stay tuned to FELA News!
