Godrej Group shareholdings realigned post family settlement agreement completion

Godrej Group shareholdings: The realignment of shareholdings in various Godrej Group firms has been finalised following a family settlement agreement that split the 127-year-old conglomerate into two distinct entities, according to recent regulatory filings.

Under the family settlement agreement (FSA) reached in April this year, the expansive group, which operates in sectors ranging from soaps and home appliances to real estate, was divided into Godrej Industries Group (GIG), led by Adi and Nadir Godrej, and Godrej Enterprises Group (GEG), overseen by Jamshyd Godrej and Smita Godrej Crishna.

As per the settlement, members of the promoter family of Godrej Industries Group, including Nadir Godrej and the children of Adi Godrej, have taken control of the flagship firm Godrej Industries Ltd (GIL) with a 64.66 per cent stake. This shift was detailed in a regulatory filing on Friday.

Nadir Godrej, along with Tanya Dubash, Nisaba Godrej, and Pirojsha Godrej (children of Adi Godrej) and persons acting in concert (PAC), have acquired 21.40 per cent of GIL shares. This acquisition was achieved through the realignment of 20.84 per cent shares from transferors and the retirement of certain family members from Anamudi Real Estates LLP, an intermediate holding and promoter group entity with a 0.57 per cent stake in GIL.

The transferors include Jamshyd Godrej, his children Raika and Navroze Godrej, Smita Godrej Crishna, and her daughter Nyrika Holkar. The realignment was completed on July 18, 2024.

In a separate filing, Godrej Consumer Products Ltd (GCPL) stated that Nadir Godrej, his children Burjis and Hormazd, along with Tanya Dubash, Nisaba, Pirojsha, and PACs, now control 53.05 per cent of the company's voting rights.

Further filings from Godrej Agrovet Ltd, Godrej Properties Ltd, and Astec LifeSciences Ltd confirmed that the promoter group members have completed the realignment as per the FSA dated April 30, 2024.

The April agreement marked a significant reorganisation of the Godrej Group. Adi and Nadir Godrej retained Godrej Industries, encompassing five listed firms, while Jamshyd and Smita Godrej Crishna took control of the unlisted Godrej & Boyce and its affiliates, including a substantial land bank with prime properties in Mumbai.

The Godrej Industries Group includes listed companies such as Godrej Industries Ltd, Godrej Consumer Products Ltd, Godrej Properties Ltd, Godrej Agrovet Ltd, and Astec Lifesciences Ltd. Conversely, the Godrej Enterprises Group's flagship firm is Godrej & Boyce Manufacturing Co, with operations spanning aerospace, aviation, defence, energy, construction, IT, and software.

(with PTI inputs)