Raymond Ltd., renowned globally for its suit fabric production, witnessed a significant downfall in Mumbai for the seventh consecutive day following the high-profile separation announcement between Gautam Singhania, the billionaire Chairman, and his wife Nawaz Singhania. The company’s stocks plunged by 12% since November 13, coinciding with Singhania’s declaration of separation, causing a market value drop of over $180 million.
The continued decline, marking a 4.4% fall on Wednesday, represents the most substantial drop since October 25. The uncertainty stemming from the separation announcement has fueled investor concern, causing notable fluctuations in the company’s stock performance.
Reports from The Economic Times suggest that Nawaz Singhania, also a Raymond board member, has reportedly sought a significant portion—75%—of Gautam Singhania’s $1.4 billion fortune as part of their settlement. However, a response from the Raymond Group to this claim is yet to be issued.
Varun Singh, an analyst at ICICI Securities Ltd., highlighted the uncertainty surrounding the separation as a key factor impacting the company’s stock performance, citing concerns regarding potential implications for the business, particularly since Nawaz Singhania holds a board position.
Singh initiated coverage on the stock with a hold recommendation on November 20. Currently, the company boasts seven buy ratings and no sell ratings, according to data compiled by Bloomberg.
Sources By Agencies
