Raymond Ltd., a global leader in the production of suit fabric, is experiencing a downward trend in the Mumbai stock market due to the highly publicized separation of billionaire Chairman Gautam Singhania and his wife. This prolonged and acrimonious split has created uncertainty among investors, resulting in the stock falling for the seventh consecutive day.
Since the announcement of the separation on November 13, the stock has plummeted by 12 percent, causing a loss of over $180 million in market value. On Wednesday, the shares experienced a significant drop of 4.4 percent, marking the largest decline since October 25.
The Economic Times reported that Nawaz Singhania, who has been married to Gautam for 32 years and serves as a board member at Raymond, is seeking 75 percent of her husband’s $1.4 billion fortune as part of a settlement. The Raymond Group has not yet responded to this report.
This situation has created considerable uncertainty among investors, with Varun Singh of ICICI Securities Ltd. stating, “Uncertainty around the separation is weighing on the stock. Nobody knows what kind of impact it will have on the company.” The fact that Nawaz is a board member has further complicated matters, raising concerns about corporate governance.
In response to these developments, analyst Singh initiated coverage on the stock with a hold recommendation on November 20. According to Bloomberg data, the company currently has seven buy ratings and no sell ratings, indicating a mixed sentiment among analysts.
The ongoing saga surrounding the separation of Gautam Singhania and his wife has undoubtedly contributed to the heightened uncertainty and negative sentiment surrounding Raymond Ltd., impacting its position in the stock market.
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