Godrej family begins process to untangle cross-holdings in listed entities

Adi/Nadir family to acquire 20.84% in Godrej Inds from Jamshyd/Smita family, and another 12.65% from RKN Enterprises via block deals

The Godrej family has begun the process of restructuring holdings in the listed entities between Adi/Nadir and Jamshyd/Smita families with zero consideration for the acquisition of shares by the former, according to a statement to the stock exchanges.

In a notice to the exchanges on Thursday, Godrej Industries said the acquisition was proposed to be completed after four days from the April 30 intimation and after receipt of the approval from the Competition Commission of India and in line with the family settlement agreement.
 

The Adi/Nadir family will acquire an additional 20.84 per cent shares in Godrej Industries Limited from the Jamshyd/Smita family and retiring of certain members of the Godrej family from their partnership in Anamudi Real Estates LLP, an intermediate holding entity and promoter group entity that holds 0.57 per cent shares of GIL.

With this, the Adi/Nadir family, with their existing shareholding, will own 52.01 per cent in Godrej Industries — the holding company of other Godrej listed entities.

 

Besides, the Adi/Nadir family intends to acquire another 12.65 per cent stake in GIL as a separate and distinct transaction, by way of a block deal from RKN Enterprises, another promoter group entity. Rishad Naoroji, a cousin of Adi/Nadir, is a director of RKN Enterprises. Naoroji will retire from Anamudi Real Estates, a promoter entity, and only the Adi Godrej family will continue to be partners in Anamudi Retirals. 
 

Post transaction, patriarch Adi Godrej’s stake will remain static at 0.18 per cent but stake of his three children — Tanya Dubash, Nisaba, and Pirojsha — will rise from 0.22 per cent to 4.11 percent each.
 

The stake of Nadir, currently the chairman and managing director of GIL, will also rise from 0.18 per cent to 13.12 per cent. The shares are acquired from Jamshyd Godrej, Navroze Godrej, Raika Godrej, Smita Godrej Crishna, and Nyrika Holkar, the notice said.

Godrej Industries holds 64.88 per cent stake in Godrej Agrovet, 23.7 per cent in Godrej Consumer Products, and 47.3 per cent in Godrej properties.
 

Godrej Agrovet, in turn, holds a 64.75 per cent stake in Astec Lifesciences, and upon completion, the underlying transaction will result in an indirect acquisition of the majority stake in Astec and hence the Godrej family has made an open offer for Astec Lifesciences.