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Godrej Industries, Godrej Consumer, Godrej Agrovet jump 1-5% on business split
Godrej Group stocks: Godrej family reached an agreement to split the conglomerate into two branches.
Godrej Group stocks- Godrej Industries, Godrej Consumer Products and Godrej Agrovet- rose over 1-5% in early trade today (May 2). This comes after the Godrej family reached an agreement to split the conglomerate into two branches. As per the agreement that the group issued on the stock exchanges, Adi Godrej and brother Nadir Godrej will keep the listed entities while Jamshyd Godrej will get the control of unlisted companies and the land bank.
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With this, the group has been divided between two branches of the founding family: Adi and his brother Nadir on one side, and Jamshyd and Smita Crishna on the other.
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Additionally, shareholdings of family members will be realigned across companies to reflect their inherited businesses. Even after the split, both groups will continue to use the Godrej brand. The company said that the regulatory approvals for realigning the shareholding are awaited.
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The Godrej group said, “The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members. This will help maximize strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders."
