JK House Sale Will Hurt Shareholders, Says Raymond’s Gautam Singhania
On June 5, shareholders will vote on the proposal to sell real estate assets in Mumbai.
Gautam Singhania wants Raymond Ltd.’s minority shareholders to vote against a proposal which stands to benefit him and his family.
In the ongoing controversy over the company’s proposed sale of a portion of JK House to promoter members of the Singhania family, chairman and managing director Gautam Singhania has urged shareholders to vote against the sale. In a letter to shareholders which was later shared with the media, Singhania said he personally did not approve of the transaction but will abstain from voting on it during the company’s upcoming annual general meeting as he is an interested party.
In the interest of all shareholders including minority shareholders, I would like to reinstate the fact that the company is taking all appropriate measures to safeguard the interests of stakeholders.Gautam Singhania, CMD, Raymond
The proposed sale seeks to transfer four duplex apartments of 5,200 square feet each to the Singhania family in Mumbai. The transfer, according to shareholder advisory firm IiAS, will take place at nearly one-hundredth the cost of building the property which was borne by the company. IiAS had also appealed to shareholders asking them to reject the proposal, last week.
The minority shareholders are scheduled to cast their vote at the annual general meeting to be held in Mumbai on June 5.
Singhania also cited an earlier tripartite agreement entered in 2007, which had proposed to offer apartments for sale at a substantial discount to the current prevailing market price to the promoter family. The company he said had decided to not act on the agreement as it would cause a major loss to the company and its shareholders. Three related parties have initiated legal action against the company, as a consequence, he said.