 "Raymond reiterates commitment to protect interests of minority shareholders")
As the ongoing divorce settlement dispute between Raymond Chairman and Managing Director (CMD) Gautam Singhania and his estranged wife Nawaz Modi has taken a contentious turn, the company has now issued a statement reiterating its commitment to protect its minority shareholders.
In an official statement on Friday, the company said, "the Independent directors [ID], over the last few weeks, have been meeting and monitoring the situation so far as it affects the company and the minority shareholders."
It also reiterated the company's commitment "to protect, at all times, the interests of non-promoter minority shareholders, employees and other stakeholders."
"The ID are alert to ensure that the matrimonial disputes between the two promoter directors do not in any manner affect the capacity of the chairman to manage the affairs and business of the company," said the company, adding, "It may be appreciated that neither any law nor any corporate governance standard requires ID to inquire into, investigate, or delve into the merits or otherwise, of such matrimonial disputes, which lie beyond the remit of the ID."
"The ID shall continue to exercise utmost vigilance in watching the evolving situation and shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders," it added.
Further, assuring the stakeholders that the ID shall act dispassionately, the company said, "The paramount consideration shall always be the interests of the company as a whole and its non-promoter shareholders. Any material development or remedial measures which impact the Company shall be forthwith communicated in a spirit of complete transparency."
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The company further stated that it has decided to retain Berjis Desai, senior independent legal counsel, for advising the ID. Desai has no links with the promoters or the company.
Gautam Singhania family feud
Gautam Singhania publicly announced his separation from Nawaz Modi on November 13, subsequently followed by videos depicting Modi being excluded from a company Diwali party.
In the aftermath, Nawaz Modi publicly accused Gautam Singhania of physical assault, leading to her hospitalisation. The public fallout also led to a decline in Raymond's stock price, shedding over Rs 1,500 crore from its market capitalisation within two weeks.
This was after Nawaz Modi demanded a divorce settlement worth 75 per cent of Singhania's $1.4 billion net worth. Shares of Raymond have declined over 14 per cent in a month. In the past 12 trading sessions, the stock has fallen 20 per cent. This marks the longest losing streak of the company on record.