IiAS Urges Raymond's Independent Directors to Investigate the Nawaz Modi and Gautam Singhania Matter

Proxy Advisory Firm Urges Raymond Limited Directors to Take Action Amidst Chairman's Controversial Divorce:

 

In a recent development, Institutional Investor Advisory Services India Limited (IiAS), a prominent proxy advisory firm, has issued a compelling open letter, urging independent directors of Raymond Limited to intervene in the ongoing tumult between the company's Chairman and Managing Director, Gautam Singhania, and board member Nawaz Modi, his estranged wife.

 

Call for Promoters to Step Down:

 IiAS advocates for the proactive involvement of Raymond's independent directors, suggesting they request the promoters to step down. The advisory firm emphasizes the need for immediate actions to address what they describe as a 'long-drawn acrimonious battle' that has unfolded between Singhania and Modi.

 

Silence and Stock Price Concerns: 

Expressing concern over the gravity of accusations exchanged between board members, the letter highlights the unsettling silence from Raymond's leadership. IiAS underscores the potential misinterpretation of this silence by stakeholders, emphasizing the impact on the significant erosion in the company's stock price in recent days.

 

Independent Investigation Proposed: 

In a bid to restore confidence, IiAS recommends the initiation of an independent investigation into the allegations of assault and CEO excesses. The firm goes a step further, suggesting that, during the investigation, both Gautam Singhania and Nawaz Modi consider stepping aside from their roles as board members.

 

Raymond Group Stock Plunge: 

The advisory firm's letter comes in the wake of Raymond Group's stock taking a hit on the Bombay Stock Exchange (BSE), closing at ₹1,578, down from over ₹1889 per share before Singhania's announcement of his divorce with Nawaz Modi.

 

Singhania's Reassurance Amidst Controversy: 

Despite the turmoil, Gautam Singhania, in a communication to Raymond's employees, assures them of the "smooth functioning" of the company. While refraining from commenting on his personal life, Singhania emphasizes his commitment to maintaining the company's operations during these challenging times.

 

Personal Disputes and Business as Usual: 

Singhania's publicized conflict with Nawaz Modi, who has accused him of domestic violence and reportedly seeks a substantial portion of his fortune in a settlement, has garnered widespread attention. However, Singhania remains resolute in steering Raymond Limited through the storm, asserting that, despite personal challenges, it is "business as usual" at the company.