May 02, 2024 09:35 AM IST
Godrej Group stocks: Godrej family reached an agreement to split the conglomerate into two branches.
Godrej Group stocks- Godrej Industries, Godrej Consumer Products and Godrej Agrovet- rose over 1-5% in early trade today (May 2). This comes after the Godrej family reached an agreement to split the conglomerate into two branches. As per the agreement that the group issued on the stock exchanges, Adi Godrej and brother Nadir Godrej will keep the listed entities while Jamshyd Godrej will get the control of unlisted companies and the land bank.
Read more: Godrej Group: Why is the 127-year-old business splitting? Explained
With this, the group has been divided between two branches of the founding family: Adi and his brother Nadir on one side, and Jamshyd and Smita Crishna on the other.
Unlock exclusive access to the latest news on India’s general elections, only on the HT App. Download Now!
Read more: Google layoffs: ‘Core’ employees fired, Sundar Pichai moving positions to India
Additionally, shareholdings of family members will be realigned across companies to reflect their inherited businesses. Even after the split, both groups will continue to use the Godrej brand. The company said that the regulatory approvals for realigning the shareholding are awaited.
Read more: Joe Biden says ‘xenophobia’ stalling China, India economy: ‘They don’t want immigrants but US…’
The Godrej group said, “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. This will help maximize strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.”
Discover the pivotal moments that shaped India’s electoral journey on the Eras section of our exclusive Elections product. Access all content absolutely free on the HT App. Download now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs