Adi-Nadir Family Acquires Over 12% Stake in Godrej Industries for Rs.3,800 Crore

On Monday, the promoter entities of Godrej Industries Ltd. executed significant open market transactions, resulting in share exchanges worth Rs.3,800 crore. According to block deal data, KN Enterprises sold 4.25 crore shares at Rs.893.05 per share, totaling an aggregate deal value of Rs.3,800 crore.

Key Acquisitions 

Prominent family members Nisaba Godrej, Tanya Dubash, and Pirojsha Adi Godrej acquired 56.94 lakh shares each, representing a 1.69% equity stake, for Rs.509 crore apiece. Nadir Burjor Godrej made a notable purchase of 2.54 crore shares, equivalent to a 7.58% equity stake, for Rs.2,277 crore. RKN Enterprises, owned by Rishad Naroaji, facilitated these transactions.

As of March 2024, the total promoter shareholding in Godrej Industries stood at 67.16%. Nisaba Godrej, Tanya Dubash, and Pirojsha Adi Godrej each held a 0.22% stake, while Nadir Godrej had a 3.95% stake.

Business Settlement & Division 

Two months ago, the Godrej family reached an agreement to split their $5.7 billion conglomerate into two branches. Adi Godrej and his brother Nadir will retain control of the five listed companies, including interests in consumer goods, real estate, agriculture, chemicals, and gourmet retail. Meanwhile, cousins Jamshyd and Smita Godrej will take ownership of the unlisted Godrej & Boyce Mfg. Co. and its affiliates, along with a huge land bank.

Competition Commission 

The Competition Commission of India approved this family settlement in June. The Adi-Nadir faction’s acquisition of a 12.65% stake in Godrej Industries from RKN Enterprises is part of this settlement as Nadir Godrej acquired a 7.57% stake worth Rs.2,277 crore, while Adi Godrej’s children each acquired a 1.69% stake worth Rs.509 crore.

Realignment 

The Godrej family split, described as an “ownership realignment,” aims to align directions and visions of the family members, ultimately creating long-term value for shareholders and stakeholders. Both groups will continue to use the Godrej brand, to grow and strengthen their shared heritage.

Conclusion: In conclusion, these transactions highlight the Godrej family’s realignment, strengthening their control and vision for the future of Godrej Industries. This move, approved by the Competition Commission of India, brings out the family’s commitment to expand business and create long-term value for all stakeholders.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.