 "Biz split impact: Godrej stocks rally up to 9%; Godrej Properties down 4%")
Shares of Godrej Group companies rallied up to 9 per cent on the BSE in Thursday's intra-day trade after the Godrej family on Tuesday announced an ownership realignment of their shareholdings in the Godrej Companies.
According to the settlement plan, listed entities including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences will have Nadir Godrej as chairperson. In control, besides Nadir Godrej will be Adi Godrej, and their immediate family members.
The list of companies under their control also includes Innovia Multiventures Private Limited, Godrej Seeds and Genetics, and Anamudi Real Estates, along with their respective subsidiaries and joint ventures.
The Adi/Nadir Godrej family has jointly with other family members/trusts offered to the shareholders of Astec Lifesciences to acquire an additional 26 per cent stake from the public as part of the family settlement agreement (FSA).
As per the company's filing, the offer, made at the price of Rs 1,069.75 per share, was triggered as the Adi/Nadir family's plan to acquire 20.84 per cent stake in Godrej Industries (GIL) from the Jamshyd Godrej/Smita Crishna Godrej family as per the FSA. The open offer, on full acceptance, will cost Rs 545 crore to the Adi/Nadir family. Godrej Industries indirectly holds shares in Astec LifeSciences, a subsidiary of Godrej Agrovet which owns 64.88 per cent in Astec.
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Among individual stocks, Astech Lifesciences soared 9 per cent to Rs 1,400 on the BSE in intra-day trade. Godrej Agrovet surged 6 per cent to Rs 575 followed by Godrej Consumer Products (3 per cent to Rs 1,254) and Godrej Industries (1 per cent at Rs 989.90). At 09:44 am; these stocks were trading higher in the range of 1 per cent to 3 per cent. In comparison, the S&P BSE Sensex was up 0.26 per cent at 74,676.
Shares of Godrej Properties, however, slipped 4 per cent to Rs 2,531 in intra-day deal.
In the other Godrej camp are Jamshyd Godrej, Nyrika Holkar, and their immediate families who will have a control over Godrej & Boyce Manufacturing Company, Godrej Holdings Private Limited and Godrej Infotech Limited, including all respective subsidiaries and joint ventures, and RKNE Enterprises.
“With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses,” said Jamshyd Godrej on future outlook.