Raymond shares drop 4%, take losing run to 7th day amid reports on MD Gautam Singhania's split terms

Selling pressure in shares of Raymond Ltd intensified on Wednesday, as the scrip fell over 4 per cent to take its losing streak to seventh straight session as chairman Gautam Hari Singhania's estranged wife Nawaz Gautam Singhania reportedly demanded 75 per cent of his fortunes. Reports suggested that Singhania tentatively agreed to the demand and proposed creating a family trust where he could be the sole managing trustee.  The terms are reportedly unacceptable to Nawaz Modi Singhania.

Promoters owned 49.11 per cent stake in Raymond as on September 30. At present, Nawaz is non-executive director at Raymond. Gautam, on the other hand, is Chairman & MD.

In an exclusive e-mail interview to India Today, Nawaz Singhania alleged that she was "beat up, smashed, and kicked" by her husband. Singhania, she claimed,  "punched" his minor daughter Niharika for about 15 minutes."

Raymond shares fell 4.37 per cent to hit a low of Rs 1,666 on BSE. The stock is down 12.36 per cent over its November 12 closing of Rs 1,901.10. Gautam Singhania was appointed as a whole-time director on the board of Raymond in 1990. Later he was elevated to the position of Chairman & Managing director in 2000.

The fall in the stock has been seen amid an initiation of coverage on the stock by ICICI Securities on November 22. This brokerage has ‘Hold’ recommendation on the stock with  a share price target of Rs 1,860, as it highlighted challenging demand environment, increased competition and rising input cost as key risks to the stock’s upside. Antique Stock Broking has a Buy rating on the stock with a target of Rs 2,500.

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