Finance & Economy | News & Insights

Gautam Singhania and Nawaz Modi’s Split Whittles Raymond’s Market Cap by $180 Million

Published: November 24, 2023

Raymond Ltd., the global leader in suit fabric production, witnessed its seventh consecutive day of decline in Mumbai amidst the acrimonious split between its chairman, Gautam Singhania, and his wife. This contentious separation has created an atmosphere of uncertainty among investors, leading to a significant decrease in the company’s stock.

Since the separation announcement on November 13, the stock has plummeted by a staggering 12%, eradicating over $180 million in market value. Yesterday, Raymond Ltd.’s shares fell by an additional 4.4%, marking the most significant drop the company has experienced since October 25.

According to reports from The Economic Times, Nawaz Singhania, Gautam Singhania’s wife, and Raymond Ltd.’s board member, has allegedly demanded 75% of Gautam Singhania’s $1.4 billion fortune as part of the settlement.

The Raymond Group, however, has yet to respond to these claims. Analysts, such as Varun Singh from ICICI Securities Ltd., believe that the separation’s uncertainty has directly impacted the stock and raised concerns about corporate governance since the wife is also a board member.

The duration and consequences of this separation on the company remain unclear, adding to the unease felt by investors.

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