Shares of Godrej Group companies were gaining after the 127-year-old group announced an amicable family settlement, dividing its operations into two factions and facilitating the transition to the next generation of leaders within the family.
What Happened: As per the terms of the agreement, Adi Godrej and Nadir Godrej will gain control of all listed entities, while Jamshyd Godrej and Smita Crishna will oversee the unlisted entities, including Godrej Boyce and its affiliates, along with the substantial land holdings in Mumbai.
The settlement also involves key positions for the next generation, with Pirojsha Godrej, executive chairman of Godrej Properties, and Nyrika Holkar, niece of Jamshyd Godrej, assuming significant roles within the respective groups.
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In a statement, the group emphasised that the realignment was conducted respectfully and with mindfulness to maintain harmony, acknowledging the varying visions of family members. This realignment aims to enhance strategic direction, focus and agility, ultimately accelerating the creation of long-term value for shareholders and stakeholders.
Even Split: Under the settlement, each group will maintain autonomy over its operations, with clear provisions to prevent direct or indirect involvement in the other group’s entities. Additionally, shares held by either group cannot be transferred to competitors without prior permission.
As part of the settlement, an open offer will be made to the public shareholders of Astec Lifesciences due to an indirect change in shareholding. Both factions will have the right to use the “Godrej” brand for a specified period, after which they can enter similar businesses independently but without using the “Godrej” brand.
Price Action: Godrej Industries’ share price was up 1.05% at ₹970.65% near the start of trade on Thursday. Godrej Consumer Products was up 0.62% at ₹1,227, Godrej Agrovet’s stock gained 2.58% at ₹558.20 and Astec LifeSciences jumped 1.41% to ₹1,301. Godrej Properties was the group’s only listed stock in the red, down over 3.5%.
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