Godrej Ind dips 3% after block deal, trades lower for third straight day

Anamudi Real Estates LLP, one of the promoters of the company, had acquired 2.27 million equity shares of the company for Rs 94.73 crore via open market between November 14, and December 15, 2020

Shares of Godrej Industries dipped 3 per cent to Rs 434 on the BSE on Monday after one million of the company's equity shares changed hands via block deal. The stock was trading lower for the third straight day, down 8 per cent during the period. It hit a 52-week high of Rs 483 on Wednesday, December 16, 2020.

Godrej Industries is the flagship company of the Godrej Group and holds leadership position in its core business of oleochemicals in the domestic market.

At 10:41 am, around 1.001 million equity shares, representing 0.3 per cent equity of Godrej Industries, changed hands on the BSE, the exchange data shows. The name of the buyer and seller were not ascertained immediately.

According to disclosure made by Godrej Industries to stock exchanges, Anamudi Real Estates LLP, one of the promoters of the company, has acquired 2.27 million equity shares of the company for Rs 94.73 crore via open market between November 14, and December 15, 2020. Post acquisition, Anamudi Real Estates LLP stake in Godrej Industries increased to 1.81 per cent from 1.13 per cent earlier, data shows.

The stock has underperformed the market in the past six months, with a gain of 14 per cent, against 35 per cent rally in the S&P BSE Sensex. In the last three months, it was up 10 per cent, as compared to 23 rise in the benchmark index.

ICRA, on December 3, has assigned 'ICRA A1+' rating to the Company's issue of commercial Paper programme of upto Rs 1,500 crore. Godrej Industries has a healthy portfolio of investments in the Group companies, through which it derives a stable source of dividend income and also lends financial flexibility because of its market value, which is significantly higher than its book value.

Besides being an investment holding company, Godrej Industries’ standalone business profile remains restricted to its oleochemicals and estate management businesses, ICRA said in a rating rationale.

The company's leverage and coverage indicators remain moderate. ICRA notes Godrej Industries’ reliance on short-term borrowings for meeting its funding requirements, which expose it to refinancing risks. Nonetheless, following the issue of Rs 1,500 crore non-convertible debentures in the current fiscal, through two tranches of Rs. 750 crore each in July 2020 and October 2020, the company’s debt mix has improved sequentially, it said. CLICK HERE FOR THE FULL REPORT