Raymond's name will ultimately depend on how shareholders, bankers look at it: Vijaypat Singhania on Gautam-Nawaz split

As Gautam Singhania-Nawaz Modi separation resulted into to Rs 1,500-crore erosion of market capitalisation of Raymond Ltd stock, the firm's CMD's father Vijaypat said the firm's name will "ultimately depend on how shareholders, bankers look at it".

On Thursday, in an interview with Sourav Majumdar, Editor, Business Today, Vijaypat Singhania said: "Raymond has a very large number of mature, logical shareholders. They can think for themselves. If they see something bad, they react quickly."

With Nawaz Modi Singhania reportedly demanding 75% of Gautam Singhania's $1.4-billion wealth as part of settlement, Raymond's share price took a hit. In the last five trading sessions, Raymond stock fell 8%. It's been one of the best performing stocks after Covid lows. It rose as much as eight times since March 2020.

When asked if the situation will rattle the shareholders, 85-year-old Vijaypat said, "Raymond's name will ultimately depend on how a larger number of shareholders, bankers, buyers, sellers look at it. There are two things in it. One is how they see the issue itself and how it will affect them and they will also look at Raymond's performance and they are not necessarily the same. So, I think it's a very difficult question to answer whether it will affect the Raymond name. We took a long time in building it. It was a very small company making blankets when we bought and then I took over. Today, it has worldwide fame."

Vijaypat said the current situation "breaks his heart" while adding that he won't interfere in the situation.

"He's (Gautam) breaking up Raymond. It breaks my heart. But I don't interfere. I don't tell him what he should do. He has to live. I have lived my life. I have maybe 2-3 years left. He has many more, so he must make his own goal," said Vijaypat.

Earlier this month, Gautam Singhania publicly announced the separation from his wife after 32 years of marriage through a post on social media platform X. While the announcement did not delve into the reasons behind the separation, it mentioned the couple's commitment to pursuing different paths.

Vijaypat said Gautam Singhania will never agree for Nawaz Modi's reported demand of 75% of his wealth to secure the financial well-being of their two daughters, Niharika and Nisa.

"Under the Hindu Marriage Act as I know, 50% of the husband's holding automatically goes to the wife in a separation. A very simple lawyer can get her that under the Hindu Marriage Act. Why is she fighting for 75%? Gautam is never going to give in because his motto is to buy everybody and buy everything. That's what he did with me. I didn't have that kind of money left to fight him. He bought everything. He'll buy everything. By fighting like this, I don't think she'll get much," he said.

"In the interest of my two beautifiul daughters, I would like to maintain my family’s dignity and I will refrain from offering any comment. Please respect my privacy," Gautam Singhania told Business Today.

A few years ago, Vijaypat and Gautam Singhania were at loggerheads over property and a host of other reasons.

In 2017, Vijaypat had alleged that Raymond Ltd hasn't given him possession of a duplex in the multi-storey JK House building in south Mumbai. As per a 2007 family agreement, Vijaypat and his son Gautam, and the widow and two sons of Vijaypat's brother Ajaypat Singhania, were to get a duplex each in JK House, a family property.

Vijaypat said he was denied a flat in Singhania family's 36-storey JK House in South Mumbai. The former industrialist had alleged in his petition that Gautam was occupying more area in the JK House than he was entitled to. He also said that Raymond failed to respond to his offers of payment to get possession of the duplex.

Vijaypat stepped down as chairman of the prominent company in 2015 after handing over the reins to Gautam.

The rift worsened after Vijaypat, an avid aviator, alleged that many invaluable documents and a gold medal given by the President of India were missing from his cabin at Mahindra Tower in Worli.