Godrej: Stocks of companies within the Godrej Group, such as Godrej Industries, Godrej Consumer Products, and Godrej Agrovet, experienced gains ranging from 1% to 5% during early trading on Thursday. This surge followed news of the Godrej family’s decision to divide the conglomerate into two separate entities.
Godrej Industries saw its share price rise by up to 3%, reaching a new 52-week high of ₹989.90 per share on the BSE. Similarly, shares of Godrej Consumer Products increased by 2.8%, while Godrej Agrovet witnessed a substantial rally of 5.5% in its share price.
Conversely, the share price of The Company Properties dropped by more than 4.4% during early trading on May 2nd.
As per the Family Settlement Agreement, which was disclosed on the stock exchanges by the company, Adi Godrej and his brother Nadir Godrej will retain ownership of the listed companies.
The privately held company Godrej & Boyce Mfg. Co. Ltd will be transferred to the families of siblings Jamshyd Godrej and Smita Crishna. This company has diverse interests spanning aerospace, aviation, defense, engines and motors, construction, furniture, software, and IT, among other sectors. It will be incorporated into the Godrej Enterprises Group.
Family members’ shareholdings will be reorganized across different companies to mirror their respective inherited businesses. Both factions will retain the use of the Godrej brand. Additionally, the agreement tackles matters concerning royalty, brand usage, and the development of land banks.
The realignment has been conducted with respect and mindfulness to uphold harmony and to better synchronize ownership in recognition of the varied visions held by members of the Godrej family. This approach will enhance the strategic direction, focus, and agility, and expedite the generation of long-term value for shareholders and all other stakeholders, stated the company on April 30th.
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The realignment will be executed once the necessary regulatory approvals have been secured.
