Raymond Ltd., a major global producer of suit fabric, saw its share price drop significantly following the contentious separation announcement between its billionaire Chairman, Gautam Singhania, and his wife, Nawaz Singhania.
The stock has witnessed a 12% drop since November 13, erasing over $180 million in market value. The uncertainty surrounding the separation has raised concerns among investors, with shares falling up to 4.4% on Wednesday alone, marking the most significant decline since October 25.
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According to reports, Nawaz Singhania is reportedly seeking 75% of Gautam Singhania's $1.4 billion fortune as part of a settlement.The ongoing separation saga is contributing to stock market volatility, and the involvement of Nawaz Singhania as a board member adds complexity, raising corporate governance concerns.
Analysts, including Varun Singh from ICICI Securities Ltd., note the uncertainty and corporate governance issues, with the stock recently receiving a hold recommendation since the separation announcement on November 20. Currently, Raymond Ltd. has seven buy ratings and no sell ratings, according to data compiled by Bloomberg.