Godrej Industries shares zoom after promoters buy stake worth Rs 3,800 cr

Shares of Godrej Industries soared up to 3.2 per cent at Rs 928 per share on the BSE in Tuesday’s early morning deals. The stock price surge came after the promoter entities of Godrej Industries Ltd. exchanged shares worth Rs 3,800 crore via open market deals on Monday. 

RKN Enterprises sold 42.5 million shares for Rs 893.05 apiece, as per block deal data on the BSE. The aggregate deal value stands at Rs 3,800 crore.

According to an exchange filing, promoters Nadir Godrej bought around 25.5 million shares equivalent to 7.58 per cent stake in the company from RKN Enterprises. While others Tanya Dubash, Nisaba Godrej and Pirojsha Godrej bought around 5.69 million shares each equivalent to 1.69 per cent of the stake in the company.

In an exchange filing on Monday, the company also revealed that it has signed business transfer agreements with Shree Vallabh Chemicals Unit II for a total worth of Rs 45 crore. 

“Godrej Industries’ Chemicals Business has announced the signing of a Business Transfer Agreement with Shree Vallabh Chemicals Unit II (Kheda) with the intention to acquire Ethoxylation Unit II. The said property is located at Kheda, Gujarat and Shree Vallabh Ethoxylation unit II has a manufacturing capacity of 24,000 MTPA of finished products,” the company said. 

As the company deals in oleochemicals, surfactants, specialities and biotech, this transaction will help it to expand its product offerings by adding the ethoxylation technology to its portfolio of process and batch technologies. 

Godrej Industries has a total market capitalisation of Rs 30,579 crore. 

At 10:43 AM; the stock of the company gave up most of its gains and was trading 0.96 per cent higher at Rs 908.55 per share on the BSE. In comparison the BSE Sensex rose 0.26 per cent to 70,170 levels.