Raymond shareholders reject deal to sell assets to Singhania families

MUMBAI: More than 95% of

Raymond Ltd

’s shareholders voted against the company’s resolution to sell four duplex flats in

JK House

, located in Mumbai’s posh

Breach Candy

road, at throwaway prices to entities belonging to the Singhania family. At the annual general meeting held in Ratnagiri, Maharashtra on Monday, 92% or 28.6 lakh votes of non-institutional shareholders voted against the proposed sale, along with nearly 100% of institutional shareholders. With non-promoter shareholders voting against resolution number 10, it has resulted in a victory for Raymond CMD Gautam Singhania who had urged investors to vote against the proposal. Since the planned sale is a “related party transaction” that involved the company and its promoters and relatives, the promoters were not allowed to vote in this special resolution. The apartments were proposed to be sold at a rate of Rs 9,200 per square feet, a fraction of the current market rates, to four Singhania family entities including Gautam.

“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,” said Gautam Singhania in a statement. “Protecting shareholders interest is of paramount importance to me.”

Interestingly, about 8% or 2.36 lakh non-institutional shareholders voted in favour of the resolution and 0.3% or 33 thousand institutional shareholders also supported it. The planned sale, based on a 2007-tripartite agreement between Raymond, Pashmina Holdings and four family members, according to Gautam Singhania, would cause a major loss to the textile company as well as to shareholders.