Godrej family trusts increase stake by about 2% in group company

Shareholding data for the last two years shows that Adi Godrej family members have increased their stake while their cousins, Jamshyd and Smita Crishna's stake remained the same

As part of their plan to reduce cross holdings in group companies, the BSE-listed Godrej Industries, chaired by group patriarch Adi Godrej, has acquired shares worth Rs 997 crore from their family trusts in Godrej Properties. At the same time, the trusts used the proceeds to acquire shares in Godrej Industries for Rs 870 crore.

According to the statistics submitted to the stock exchanges, BNG Family Trust, HNG Family Trust, NG Family Trust, PG Family Trust and SNG Family trust sold 0.42 per cent stake each in Godrej Properties to Godrej Industries and then used the proceeds to buy 0.75 per cent stake each in the GIL. The sellers of GIL shares were Anamudi Real Estate and Godrej Seeds and Genetics — two other unlisted holding companies of the Godrej family.

Shareholding data for the last two years shows that Adi Godrej family members have increased their stake in Godrej Industries while their cousins, Jamshyd and Smita Crishna’s stake remained the same. Anamudi Real Estate and Godrej Seeds — two promoter entities — reduced their stake in GIL. As in September-end, the promoter stake in Godrej Industries is 67.18 per cent. The trustees of the family trusts, which sold shares in Godrej Properties are Nadir Godrej and family, and Adi Godrej’s children, Nisaba and Pirojsha Godrej, and Tanya Dubash. These transactions took place in the last week of June.

In another related transaction, Godrej Industries also bought additional shares in Godrej Agrovet for Rs 251 crore.

On Monday, Vijay Crishna, a non-executive, non-independent director on the boards of Godrej Industries and Godrej Agrovet, quit from both boards citing his advancing age. 

Crishna is married to Smita Crishna-Godrej, who owns one-fifth stake in the Godrej family assets. Smita’s brother Jamshyd runs Godrej & Boyce — the consumer products company of the Godrej group. The Godrej family is trying to untangle the group’s equity and land holding among their members from the last few years.

Unlisted Godrej and Boyce Mfg Co — led by their cousin Jamshyd Godrej — owns large tracts of land in Mumbai. The five senior members of the Godrej family — Adi, Nadir, Jamshyd, Smita and their cousin, Rishad — own 15.3 per cent stakes each in Godrej and Boyce. The rest of the stake is owned by Pirojsha Godrej Foundation. According to Godrej family tradition, each family’s stake is equally divided among their children to avoid any dispute in the future.

When contacted, a Godrej Industries spokesperson said: “The Godrej family has been working on a long-term strategic plan for the group for the last few years to ensure best value for its shareholders. As part of this exercise, we have also sought advice from external partners. These discussions between the family remain ongoing.”

The family is trying to untangle the huge tracks on land in Mumbai, which is owned by Godrej and Boyce, a company chaired by Jamshyd Godrej.