Gautam Singhania, the renowned billionaire and Chairman and Managing Director (CMD) of Raymond, is facing a challenging situation amidst his ongoing divorce proceedings with estranged wife Nawaz Modi. As Raymond prepares for its annual general meeting (AGM) on June 27, Institutional Investor Advisory Services (IiAS) has urged shareholders to vote against the reappointment of Singhania as CMD.
The proxy advisory firm has called for the removal of both Singhania and Modi from their positions until the divorce proceedings are resolved. This recommendation stems from the serious allegations of domestic violence and misuse of company funds that have been leveled against Singhania by Modi.
IiAS highlights the significant negative impact these accusations have on investor confidence, a sentiment reflected in the downward trend of Raymond’s stock price. The firm believes that a fair and independent investigation is necessary before Singhania and Modi can continue in their roles.
Furthermore, IiAS has expressed concern about Singhania’s proposed remuneration, arguing that it is disproportionately high compared to industry peers and the size of the business. This raises further questions about the company’s governance and the interests of its shareholders.
Singhania has been a board member of Raymond since 1990, and the ongoing controversy surrounding his personal life and the allegations against him are putting immense pressure on the company and its shareholders. The outcome of the AGM and the subsequent actions taken by the board will be closely watched by the business community and investors alike.
