Billionaire Gautam Singhania's separation costs Raymond Rs 1,500 Crore

Shares of Raymond Ltd., one of the world's largest producers of suit fabric, fell for the seventh consecutive day in Mumbai as the separation between its billionaire Chairman Gautam Singhania and his wife sparked uncertainty among investors. The stock has dropped 12% since the announcement of the separation, erasing over $180 million in market value. Nawaz Singhania, a Raymond board member, has reportedly sought 75% of Gautam Singhania's $1.4 billion fortune as part of a settlement. The uncertainty surrounding the separation is weighing on the stock, with analysts stating that it has become a corporate governance issue since Nawaz is a board member. The company has received seven buy ratings and no sell ratings from analysts. "Uncertainty around the separation is weighing on the stock. Nobody knows what kind of impact it will have on the company," said Varun Singh, an analyst at ICICI Securities Ltd. "Since the wife is a board member, this has become a corporate governance issue."

As part of a family settlement after the couple's divorce, 53-year-old Modi has reportedly demanded 75 percent of Singhania's alleged $1.4 billion net worth for herself and her two daughters — Niharika and Nisa.Singhania has recommended creating a family trust and transferring the family's assets to it, with him serving as the only managing trustee, even though it is thought that he has generally consented to the demand.As per reports, his family members would be permitted to inherit the assets following his passing. Nawaz is thought to find this intolerable. Gautam Singhania on November 13 announced separation from his wife, saying the two have decided to pursue different paths. Singhania, 58, had married Nawaz Modi, daughter of solicitor Nadar Modi, in 1999.“This Diwali is not going to be the same as many in the past. It is my belief that Nawaz and I will pursue different paths from here on," Singhania, chairman and managing director of textiles-to-real estate conglomerate Raymond, had said in social media posts. He had married Nawaz, who was 29 years old in 1999, after eight years of courtship."32 years of being together as a couple, growing as parents and always being a strength of each other... we traversed with commitment, resolve, faith as along came the two most beautiful additions in our lives," he said.