Godrej Industries Group Acquires 13% Stake in Godrej Industries

The Godrej Industries group, controlled by Adi Godrej and his younger brother Nadir Godrej, has made a significant move by acquiring a 13% stake in Godrej Industries from RKN Enterprises, a company owned by their cousins Rishad Naoroji and Jamshyd Godrej. This strategic acquisition is estimated to cost around Rs 4,568 crore.

In a recent regulatory filing, Godrej Industries announced that the acquirers will purchase RKN’s share in the company at a price not exceeding 25% of the average 60-day market price of Rs 858 per share. As of Tuesday, the closing stock price of Godrej Industries stood at Rs 898 per share, reflecting a 1.34% increase on the BSE.

Upon completion of the share purchase, Adi and Nadir’s stake in the holding company of the GIL Group will increase from 31% to 44%. Adi’s three children, Tanya, Nisaba, and Pirojsha, will also participate in the transaction by each acquiring 2% of Godrej Industries from RKN Enterprises, while Nadir will acquire 8% of the company from the same entity.

Following the transaction, Nadir will hold the single largest block of 12% in Godrej Industries. This share purchase is part of the business separation agreement between Adi-Nadir and Jamshyd and his sister Smita Crishna. As per the terms of the agreement, Adi-Nadir will receive eight entities, including Godrej Industries, Godrej Consumer Products, Godrej Properties, and Godrej Agrovet.

On the other hand, Jamshyd and Smita will obtain four companies, including Godrej & Boyce Manufacturing and Godrej Infotech. In April, Adi and Nadir had expressed their intention to acquire 21% of Godrej Industries from Jamshyd and Smita following the business settlement agreement. It’s worth mentioning that Godrej Industries holds a stake in all the listed companies of the GIL group.