Raymond chairman Gautam Hari Singhania (in pic) got his way at the 92nd AGM of the fashion fabric maker held in Ratnagiri, Maharashtra, on Monday.
The company put forth all relevant facts pertaining to tripartite agreement between them and the related parties with respect to apartments in JK House for shareholders' considered decision-making. The shareholders voted against the resolution.
Minority investor Bharat Patel of Finquest Securities, who was agitating against this move, when contacted told Financial Chronicle: “I didn’t attend the AGM, but e voted against the resolution, because how can those apartments be given to a sub leasee?”
Interestingly, Finquest, which at the beginning of the year owned close to 6.5 per cent of the equity in Raymond, has whittled it down to just one per cent holding, exiting in favour of HDFC and others.
On Monday Raymond shares vaulted by Rs 46.80 to close at Rs 751.95.
Commenting on the development, Gautam Hari Singhania, chairman and managing director, Raymond, said, “I am happy with the outcome of voting against the resolution as this decision by shareholders is in the best interest of the company and shareholders and is aligned to my personal opinion on this issue expressed earlier. Protecting shareholders interest is of paramount importance to me. Having embraced the transition at Raymond, we are on the growth path and creating a re-imagined Raymond making it future ready for enhanced value creation for all stakeholders.”
As reported by this paper, minority shareholder Vishal Ashwin Patel had written to market regulator Sebi seeking a probe into the motives behind Gautam Hari Singhania seeking shareholders’ approval for allotment of four duplex apartments at JK House in Mumbai to members of the promoters’ family.
In his letter, minority shareholder Vishal Ashwin Patel asked Sebi “not to fall prey to Mr. Singhania’s deceitful act” and take the ‘strongest possible action’.
Responding to the allegations, a Raymond Ltd. spokesperson said, “Gautam Singhania has expressed his views on the matter and has taken a firm and decisive stand putting forth his clear intent to protect shareholders’ interests ahead of family and has assured that the company is taking all appropriate measures to safeguard stakeholders.”
Raymond has proposed a resolution approving an agreement entered into in 2007 by the company with Gautam Singhania, his father Vijaypat Singhania, aunt Venna devi and cousin Akshaypath for registration of duplex flats at JK House.
These individuals were earlier staying in duplex flats, which were owned by the company. On the grounds that the building was structurally weak and required redevelopment, the company entered into agreements whereby they were given an option to purchase equivalent area in the new building at Rs 9,200 per sq ft, inclusive of stamp duty.
