Why Singhania’s personal woes shouldn't be allowed to destroy shareholder wealth

livemint.com:

Raymond Limited, the world’s largest integrated fabric manufacturer and India’s largest producer of worsted fabric, are paying a heavy price as they watch this drama unfold. Ever since Gautam Hari Singhania, the chairman and managing director of Raymond, took to social media platform X to announced that he was in the process of divorcing his wife of 24 years, Nawaz Modi Singhania, who’s also a promoter-director on the Raymond board, the company’s stock has been in freefall. Over Rs1,700 crore of shareholder wealth has already been wiped out after Singhania’s family troubles became public.

Jittery shareholders have been exiting the stock fearing turmoil at the top, since Nawaz Modi Singhania has reportedly claimed 75% of Gautam Singhania’s personal wealth of over $1.3 billion for herself and their two daughters. Since a bulk of this wealth comes from the 49.11% shares in Raymond Ltd that he holds in his personal capacity and through associated companies, there are justifiable fears of forcible changes in leadership if the settlement goes through. From Rs1,889 on November 10–a day before a video went viral of Nawaz Modi Singhania being prevented from attending a Raymond Diwali function–the share dropped to Rs1,647 on Monday, down nearly 13% and more than 25% below the stock’s 52-week high.

Gautam Singhania is no stranger to controversy linked to his personal life. There was a very public estrangement with his elder brother Madhupati in 1998. At the time, both were on the Raymond board and Madhupati was slated to get half the empire.