Raymond sees longest losing streak in three years, wipes out ₹1,500 crore of market capitalisation

Shares of Raymond extended their fall for the seventh day on Wednesday (November 22) amid uncertainty surrounding the separation between its billionaire Chairman Gautam Singhania and his estranged wife Nawaz Singhania.

The stock of suit fabric producer plunged nearly 4% in Wednesday's trade, wiping out ₹1,500 crore of investor wealth over the last seven sessions. Earlier, the stock had seen similar losing streak towards the end of July 2020. However, the erosion was less than 7% back then compared to nearly 12% fall clocked during the latest seven days. With Wednesday’s slide, the stock has come off as much as 23% from its September high. According to media reports, Nawaz has sought 75% of Singhania’s $1.4 billion fortune as part of a settlement.

Market participants are of the view that, since the wife is a board member, the issue has become more of a corporate governance issue rather than just a family dispute. Nawaz Singhania, his wife of 32 years and a Raymond board member took home ₹31.50 lakh in financial year 2023 as sitting fees and commission from the company. Her emolument for the financial year 2022 stood at ₹19 lakh. Additionally, she also held 2,500 equity shares of the company at the end of the year. Other than Nawaz, no other directors are related inter-se.