Raymond's Gautam Singhania, estranged wife Nawaz Modi reach 'realistic' settlement
Raymond Group Chairman and Managing Director Gautam Singhania and his estranged wife Nawaz Modi are reportedly working toward a more "realistic" divorce settlement. This came after her initial demand for 75% of Singhania's net worth. The couple's lawyers reportedly presented a new proposal, with the settlement expected to be finalized soon. This comes as Raymond's shareholders and board of directors expressed concern over the impact of the public divorce and domestic violence allegations on the company's valuation and share prices.
Why does this story matter?
The couple's fallout took an ugly turn as it became public at Raymond's Diwali party, where Modi was denied entry. The couple announced their separation after a video of the incident went viral. Earlier, Modi demanded 75% of Singhania's net worth of $1.4 billion as alimony for her and their two daughters. However, Singhania countered it by offering to establish a trust for the family's assets with him as the sole trustee during his lifetime, which Modi rejected.
Modi accused Singhania of domestic violence
In the aftermath of their public spat, Modi accused Singhania of domestic violence, alleging that he thrashed her and their minor daughter at their home in September. She said differences between them existed since December 2022. She further alleged that Singhania tried to limit her involvement in the company despite her being a board member. Singhania has also had a long-running property dispute with his father, Vijaypat Singhania, the company's founder, who accused him of "breaking up" the company.
Raymond's stocks improve after weeks of descent
On the other hand, Raymond's shareholders incurred a loss of Rs. 1,700 crore because of the couple's divorce settlement, Hindustan Times reported. Before the divorce announcement, Raymond's shares traded at Rs. 1,889 apiece, while on Tuesday afternoon, it stood around Rs. 1,600. Raymond's stock experienced a decline until last Friday but rose by over 4% on the final trading day and closed at Rs. 1,563.
Matter beyond Raymond board's ambit
Earlier, Raymond appointed senior independent legal counsel Berjis Desai to advise the board on the divorce dispute between Singhania and Modi. However, last week, the board acknowledged that the matter was outside their jurisdiction. Nevertheless, Desai has been tasked with monitoring the developments and keeping the board informed. Moreover, sources said that the Raymond board might not have grounds to investigate the allegations leveled by Modi as she has not filed a formal complaint.
