Home » Fallout of Singhania Family Feud Hits Raymond Group Shares

Fallout of Singhania Family Feud Hits Raymond Group Shares

by Sana Gori
0 comment

The ongoing family feud between Gautam Singhania, the managing director of the Raymond Group, and his estranged wife, Nawaz Modi Singhania, is taking a toll on the shares and market capitalization of the renowned garment-making company. The Singhania family’s publicized divorce proceedings are translating into a negative impact on the financial stability of the Raymond Group.

Raymond Group’s Struggle with Stock Prices

Raymond Group, globally recognized as the largest suit garment manufacturer, has witnessed a continuous decline in its stock prices over the past week since news of Gautam Singhania’s divorce became public. The shares of Raymond have faced a downward spiral for ten consecutive days, with an overall decrease exceeding 12% since November 13. This decline contrasts with the benchmark S&P BSE Sensex, which has seen a modest increase of just over 1%.

During the current month until November 23, Raymond’s stock has experienced a loss of approximately 5.15%, while the Sensex has displayed a gain of 3.35%. This decline in share prices has resulted in a significant reduction in market capitalization, with the overall value of Raymond Group now standing at ₹10,985.33 crore, falling below ₹11,000 crore for the first time in several months. Raymond, with a trading history of 64 years, has been a stalwart on the stock exchanges, but the Singhania-Modi divorce saga has dealt a substantial blow to its stock prices.

Gautam Singhania,

Impact on Market Cap and Financial Loss

The market cap of Raymond Group, reflecting the cumulative value of its outstanding shares, has diminished considerably due to the prolonged decline in stock prices. The loss amounts to almost ₹1,600 crore in market capitalization over the last seven trading sessions.

Singhania-Modi Divorce Saga Unfolds

The divorce proceedings between Gautam Singhania and Nawaz Modi Singhania have been marked by intense public scrutiny. Initially, Nawaz Modi Singhania sought 75% of Gautam Singhania’s net worth in the divorce settlement, accompanied by allegations of domestic abuse against the Raymond Group’s MD. Modi claimed to have experienced physical abuse, along with her daughter Niharika, on multiple occasions.

Responding to these allegations, Gautam Singhania issued a statement emphasizing the importance of preserving his family’s dignity for the sake of his daughters. He expressed a desire to maintain privacy but proposed creating a family trust and transferring all family assets to it, with himself as the sole trustee. However, these terms were rejected by Nawaz Modi, prolonging the contentious divorce proceedings.

As the family feud continues to unfold, the financial repercussions on Raymond Group’s shares underscore the intersection of personal matters with corporate consequences. The market will keenly watch for developments in both the legal and financial aspects of this high-profile divorce.

You may also like

Leave a Comment

Copyright @2022 – Scoop360 | All Right Reserved.