The stock of Gautam Singhania, the managing director and chairman of Raymond Group, has been negatively impacted by allegations of domestic violence. He is currently finalizing the terms of his divorce from his estranged wife, Nawaz Modi Singhania. Nonetheless, the Raymond Group’s independent directors have declared that they will do everything within their power to shield the company’s investors from Gautam Singhania and Nawaz Modi’s marital discord.
The announcement was made a few days after Indian proxy advisory firm Institutional Investor Advisory Services (IIAS) urged the independent directors to look into accusations of assault against Gautam Singhania and to get in touch with investors and other stakeholders to allay their fears.
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A temporary CEO should be appointed, according to IIAS’s recommendation, given the controversy surrounding Singhania and Modi’s divorce settlement. To date, though, the independent directors have not acknowledged implementing any such alterations to the organization’s structure.
The situation as it “affects” the company and minority shareholders has been the subject of meetings by the independent directors over the past few weeks, they said. According to the statement, they “must not hesitate to proactively initiate measures, as needed, to protect the interests of all stakeholders.”
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The Raymond Group’s independent directors have expressed concern after the news of Singhania’s divorce surfaced and the company’s shares fell precipitously for 12 straight days. The share price of Raymond dropped more than 21% over a 12-session period.
War over Gautam Singhania and Nawaz Modi’s divorce
MD Raymond On November 13, Gautam Singhania made an announcement on the social media platform X about his divorce from his estranged wife, Nawaz Modi Singhania. To provide financial support for raising their two daughters, Modi and her attorneys allegedly requested in the divorce settlement 75% of the billionaire’s net worth.
A few days later, Nawaz Modi made grave accusations of domestic abuse against Singhania, saying the billionaire had repeatedly beaten her and their young daughter Niharika.
