Godrej Group Stock Split: Mixed Trends in Early Trade

New Delhi, May 2 (PTI) Shares of Godrej group companies witnessed mixed trends in the morning trade on Thursday after the founding family of the 127-year-old group has reached an agreement to split the conglomerate into two branches.

The group has been split between two branches of the founding family, with Adi Godrej and his brother Nadir on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other.

Adi Godrej and his brother Nadir will have five listed firms, including Godrej Industries and Godrej Properties, while cousins Jamshyd and Smita will get unlisted Godrej & Boyce and its affiliates as well as a land bank, including a prime property in Mumbai.

In the morning trade, shares of Godrej Industries plunged 4.33 per cent to trade at Rs 919.10 apiece, scrip of Godrej Properties declined 4.17 per cent to Rs 2,538.15 per piece on the BSE.

On the other hand, shares of Godrej Agrovet rose 2 per cent to trade at Rs 555.55 apiece, Godrej Consumer Products gained 0.80 per cent to Rs 1,229.20 and Astec Lifesciences at Rs 1,293 per piece on the bourse.

In the morning trade, the 30-share BSE index rose 249.39 points or 0.33 per cent to 74,732.16 points.

In a statement on Tuesday, the Godrej family termed the split as "an ownership realignment" of the shareholdings in the Godrej companies.

"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," it said.

The realignment will be implemented after the relevant regulatory approvals have been obtained, the group added.

Godrej Industries Group (GIG), which includes listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences, will have Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families.

Godrej Enterprises Group -- comprising Godrej & Boyce and its affiliates that have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software -- will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita's daughter Nyrika Holkar will be the executive director.

Their families will control this arm that will also hold the land bank, including 3,400 acres of prime land in Mumbai.

According to the statement, the realignment will be implemented after the relevant regulatory approvals.

As part of the restructuring, Adi and Nadir's family made an open offer to the shareholders of Astec Lifesciences. The news of the open offer pushed shares of Astec Lifesciences to trade higher.

The floor price of the open offer has been fixed at Rs 1,069.75 per share.

Through the open offer which was triggered under Sebi regulations post the settlement, Adi and Nadir's family will aim to acquire a 26 per cent stake in Astec for a total value of Rs 545 crore.