The Independent Directors of Raymond on Friday said that they have hired an independent senior legal counsel to advise the company amid the ongoing marital dispute between Chairman and MD Gautam Singhania and his estranged wife, Nawaz Modi. In a stock exchange filing, IDs said that they are alert about the situation and will take action in this regard.
"The IDs are alert to ensure that the matrimonial disputes between the two promoter directors do not in any manner affect the capacity of the Chairman & Managing Director to manage the affairs and business of the Company. However, it may be appreciated that neither any law nor any corporate governance standard requires ID to enquire into, investigate, or delve into the merits or otherwise, of such matrimonial disputes, which lie beyond the remit of the ID," the filing said.
“The IDs have decided to retain Berjis Desai, senior independent legal counsel, who has no links with the promoters or the Company, for advising the ID. The ID would like to assure the stakeholders that the ID shall act dispassionately,” it said.
The independent directors said that neither the law nor any corporate governance standard requires the ID to enquire into, investigate, or delve into the merits or otherwise, of such matrimonial disputes, which lie beyond the remit of the ID.
"The ID shall continue to exercise utmost vigilance in watching the evolving situation and shall not hesitate to proactively initiate measures, the moment required, to protect the interests of all stakeholders," the IDs said in the stock exchange filing.
Gautam Singhania announced his separation from Nawaz Modi Singhania on November 13, following which Modi asked for 75 per cent of his $1.4-billion personal wealth for herself and their two daughters.
Earlier this week, proxy advisory firm Institutional Investor Advisory Services (IiAS) asked the IDs to launch an investigation into the allegations of assault made against its managing director Gautam Singhania by his estranged wife.
Last week, Modi alleged that she and her daughter were physically assaulted by Singhania in September 2023.
She alleged that she was "beat up, smashed, and kicked" by her husband. She also claimed that Singhania "punched" his minor daughter Niharika for about 15 minutes.
She also alleged that company funds were being used for Singhania's personal benefit (CEO excesses) -- and that she was acting as a whistle-blower of sorts.
Rubbishing these claims, Singhania in November assured the employees and board members that it is "business as usual" nd that he is fully committed to its smooth functioning.
In an internal mail to the employees and the board members of Raymond, Singhania said he has chosen not to comment on the reports in media "about matters pertaining to my personal life", saying "maintaining the dignity of my family is paramount to me".
Raymond shares
Shares of Raymond have been under pressure since the marital dispute came to light. The stock fell over 13 per cent in November (till November 30). It has been losing value since September and is almost 24 per cent down in this period.
At 1.18 pm, the stock was trading at Rs 1,547.45, up by 2.97 per cent.
Raymond Q2 earnings
In the July-September quarter (Q2 FY24), Raymond reported a marginal rise in its net profit to rS 159.78 crore from rS 158.86 crore year-on-year.
Revenue from operations grew by 4 per cent year-on-year to Rs 2,253.4 crore from Rs 2,168.2 crore in Q2 FY23. The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at Rs 382 crore, up 7 per cent from Rs 358 crore in the previous year.
“With the onset of festivities and wedding season, we at Raymond are optimistic that there will be an uptick in consumer demand and overall sentiments should remain positive," said Singhania at the release of Q2 FY24 results.