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Textiles-to-real estate major Raymond has lost market valuation worth ~1,500 crore since November 13 after its Chairman Gautam Singhania last week announced separation from wife Nawaz Modi, who is a director on the board.
On Wednesday, Raymond’s shares closed 4 per cent down at ~1,676 a share with its market valuation at ~11,161 crore. The Singhania family owns half the company’s shares, which have lost 12 per cent since the separation news became public on November 13.
In a media interview on Tuesday, Modi alleged corporate governance lapses in the company and said that in a board meeting on November 8 she had raised a few issues regarding alleged misuse of company funds.
The eight-member board has five independent directors apart from Singhania, Modi, and SL Pokharna, group president.
Modi did not reply to queries sent by Business Standard.
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When contacted, Singhania said: “In the interest of my two sweetheart daughters and to respect my family’s dignity, I will refrain from offering any comment.”
Modi also alleged Singhania was trying to remove her from the board after she protested at the gate of the Raymond factory at Thane, near Mumbai, on Diwali eve when she was denied entry to a company function.
A legal source said the two sides were trying to sort out the issues privately and a settlement was expected soon. Modi and her two daughters have sought a 75 per cent share in the Singhania family assets.
Singhania, on the other hand, has suggested a trust structure.
Despite the family trouble, the company announced good results for the September quarter, which was its ninth consecutive quarter that reported the highest ever performance both in terms of revenue and earnings before interest, tax, depreciation and amortisation (Ebitda). According to a company statement, its revenue grew by 6 per cent in the quarter to ~2,321 crore with a healthy Ebitda margin of 16.5 per cent. This was despite postponement in the consumer spending cycle on account of delay in the festival and wedding season.
