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Gautam Singhania family feud: Raymond stock crumbles as mcap falls below ₹11k crore
The family feud of billionaire businessman Gautam Singhania has cast a shadow on the shares and market capital of his firm, Raymond Group.
Raymond Group managing director Gautam Singhania and estranged wife Nawaz Modi Singhania are currently in the process of finalising their divorce settlement, with the public ordeal now having a negative impact on the shares of the garment-making company.
Gautam Singhania's Raymond Group, which is the world's largest suit garment manufacturer, has been struggling to keep its stock price steady for over a week since the news of the MD's divorce went public.
Raymond shares have been falling for 10 straight days ever since the Singhania family feud made headlines, with the overall stock price falling more than 12 percent since November 13, despite the benchmark S&P BSE Sensex being up a little over one percent.
Raymond stock has lost around 5.15 percent in the current month till November 23, while the benchmark 30-share Sensex is up 3.35 per cent in the same month. The drop of the share prices has let to a loss of almost ₹1,600 crore in its market cap in the last 7 sessions.
The overall market cap of Raymond Group currently stands at ₹10,985.33 crore, dropping below ₹11k crore for the first time in several months. Raymond has been listed on the stock exchanges for 64 years, trading strong, but the Singhania-Modi divorce saga has made the stock prices take a major hit.
Gautam Singhania-Nawaz Modi divorce saga
Nawaz Modi Singhania, initially demanding 75 percent of Gautam Singhania's overall net worth in the divorce settlement, levelled allegations of domestic abuse against the Raymond boss. Modi said that her husband had been beating her and her daughter Niharika on multiple occasions.
Issuing a statement after these allegations, Gautam Singhania said, "In the interest of my two beautiful daughters, I would like to maintain my family's dignity and I will refrain from offering any comment. Please respect my privacy."
Singhania also recommended creating a family trust and transferring all the family assets to it, with him being the sole trustee. Nawaz Modi, however, rejected these terms.
