Institutional Investor Advisory Services (IIAS), a proxy advisory firm based in India, called upon the independent directors of Raymond Ltd, a textile company, to initiate a probe into the accusations of assault leveled against its managing director, as per a report by Reuters.
In September, Nawaz Modi Singhania, a board member and the wife of Managing Director Gautam Singhania, has reportedly accused him of physically assaulting her and their daughter, according to local media reports.
Raymond's shares witnessed a decline for the tenth consecutive session on Tuesday, down by over 16 per cent within this timeframe. The downward trend in share value started on November 13, when Singhania announced his separation from his wife on the social media platform X, previously known as Twitter.
In an open letter, IIAS emphasized the importance for independent directors to engage with investors and other stakeholders, addressing their concerns and “articulate a course of action they have taken following these public allegations”.
IIAS said, "In the interest of the company and to safeguard the interests of a larger set of stakeholders, we urge you to undertake an independent investigation into the allegations of both, assault and CEO excesses."
Earlier this year, in an all-cash transaction valued at Rs 2,825 crore, Godrej Consumer Products (GCPL) disclosed that it had acquired the consumer products business of Raymond Consumer Care (RCCL), a subsidiary of BSE-listed Raymond.
On a year-to-date basis, the shares of Raymond have soared to more than 5 per cent or 79 points on the Bombay Stock Exchange.
