Raymond Group managing director and chairman Gautam Singhania is currently in the process of finalising the divorce settlement with his estranged wife Nawaz Modi Singhania, with accusations of domestic violence hurting the stock of his company. However, independent directors of the Raymond Group have said they will be taking all possible measures to protect the investors of the company from the marital dispute of Gautam Singhania and Nawaz Modi.
The statement comes a few days after Institutional Investor Advisory Services (IIAS), an Indian proxy advisory firm, this week urged the independent directors to launch an investigation into allegations of assault against Gautam Singhania and communicate with investors and other stakeholders to assuage their concerns.
IIAS had recommended that the company bring in a temporary CEO in view of the controversy surrounding Singhania and Modi’s divorce settlement. However, the independent directors, so far, have not confirmed making any such change in the company hierarchy.
The independent directors have been meeting over the last few weeks and monitoring the situation as it “affects” the company and minority shareholders, they said. They “shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders,” the statement said.
The concern shown by the independent directors of Raymond Group comes after the company shares took a major hit for 12 straight days after the news of Singhania’s divorce broke out. In a 12-session streak, Raymond shares fell more than 21 per cent.
Gautam Singhania-Nawaz Modi divorce dispute
Raymond MD Gautam Singhania announced his separation from his estranged wife Nawaz Modi Singhania on social media platform X on November 13. Modi and her lawyers had reportedly demanded 75 per cent of the billionaire’s net worth in the divorce settlement as financial support for raising their two daughters.
Days later, Nawaz Modi launched serious allegations of domestic violence against Singhania, claiming that the billionaire physically assaulted her and their minor daughter Niharika on several occasions.
(With inputs from Reuters)