Adi-Nadir family to buy 12.65% stake in Godrej Ind from RKN Enterprises

As part of the family settlement, the Adi-Nadir Godrej faction will buy the 12.65 per cent stake in Godrej Industries via block deals from RKN Enterprises, thus raising its stake in the group flagship company, according to a statement to the stock exchanges.

RKN Enterprises is owned by Rishad Naroaji, a cousin of Adi Godrej, and his 12.65 per cent stake is worth Rs 3,858 crore as of Tuesday.

Godrej Industries closed at Rs 900.55 a share, up 1.65 per cent, on Tuesday.

The BSE notice indicated that the Adi-Nadir Godrej faction would follow Securities and Exchange Board of India’s (Sebi’s) pricing formula to acquire the RKN Enterprises stake.

In May 2 this year, the Godrej family had announced an amicable settlement under which the Adi-Nadir and Jamshyd-Smita families bought each other’s stakes for zero consideration in each other’s companies.

While Adi and Nadir Godrej faction controls Godrej Industries, Godrej Properties and Godrej Consumer Products, the Jamshyd Godrej family controls unlisted Godrej and Boyce Mfg.

When contacted, the Godrej group declined to comment. 

According to the plan, the Adi-Nadir family will acquire an additional 20.84 per cent shares in Godrej Industries from the Jamshyd-Smita family.

Some of the promoters will retire from Anamudi Real Estates LLP, which holds 0.57 per cent shares of Godrej Industries.

With this, the Adi-Nadir family, with their existing shareholding, will own 52.01 per cent in Godrej Industries — the holding company of the other Godrej-listed entities.

Rishad Naoroji, a cousin of Adi-Nadir, is a director of RKN Enterprises. Naoroji will retire from Anamudi Real Estates, a promoter entity, and only the Adi Godrej family will continue to be partners in Anamudi Retirals, another promoter holding company.