Gautam Singhania appointed as executive chairman of Raymond Lifestyle with 86.85% approval

Shareholders of Raymond Lifestyle have approved the appointment of Gautam Hari Singhania as the executive chairman of the company, the company said in a filing to stock exchanges.

The resolution, along with eight other special resolutions concerning the appointments of Independent Directors and Sunil Kataria as Managing Director, was passed with the requisite majority, according to the scrutinizer's report.

The special resolution for Singhania’s appointment and to fix his renumeration received 86.85% of the total votes cast during the Annual General Meeting (AGM).

A Raymond Lifestyle spokesperson said the shareholders of Raymond Lifestyle have demonstrated full confidence and voted for Gautam Hari Singhania as the Chairman and Sunil Kataria as the Managing Director of the company, reported PTI.

"This development has reinforced the fact that the promoter is fully committed towards the organisation’s growth and creating shareholder value," he said.

Raymond Lifestyle was listed on stock exchanges on September 5 following the demerger of its lifestyle business from Raymond Ltd.

Despite recommendations from proxy advisory firms like Stakeholders Empowerment Services (SES) and Institutional Investor Advisory Services (IiAS) to vote against Singhania’s appointment, the resolution was passed with an overwhelming majority.

According to reports, both the proxy advisory firms had raised concerns over remuneration policies and potential reputational risks.

Under the Companies Act 2013, a special resolution requires a supermajority of at least 75% votes in favour for approval. The scrutinizer’s report revealed that 3.63 crore votes, or 86.85% of valid votes cast, supported the resolution, while 13.15% voted against it.

The Singhania family and affiliates, who hold a 54.68% stake in Raymond Lifestyle, played a key role in the approval process.

Shares of Raymond Lifestyle were trading at ₹2,034.55 on the BSE on Thursday, up 0.63% from the previous close.