Raymond faces flak over plan to sell JK House flats to promoters

Proxy advisory firm Institutional Investor Advisory Services (IiAS) has issued an annual general meeting (AGM) notice, warning shareholders of Raymond Ltd against the sale of company-owned real estate that the firm has proposed in an AGM to be held on June 5.

Titled “Raymond Limited: The Complete Rip-Off” (a play on the classic tagline ‘The Complete Man’), the report draws attention to Raymond’s proposed sale of four duplex apartments in JK House, located in South Mumbai’s Breach Candy area, by the company to its promoters and their extended family, all part of the promoter Singhania family.

“Raymond Limited’s own valuation report states that the residential property is valued at ₹1,17,000 per square foot (built up), putting a value on the entire transaction at ₹7.1 bn (₹710 crore),” the report said. “Raymond, however, proposes to sell the property to the Singhania family factions for ₹9,200 per square foot of carpet area—over 90% discount to market rates.”

“We adhere to highest level of corporate governance. All relevant facts were put forth in the AGM notice to the shareholders much before any report was published, to take an informed decision,” a Raymond spokesperson said in an email statement.