Godrej conglomerate split: How should investors play the listed entities?
Godrej Group, which has both the listed and unlisted entities, decided to split the conglomerate and operate as two entities — Godrej Enterprises and Godrej Industries. The conglomerate operates across aerospace, aviation, defence and liquid engines among others.
The realignment will be implemented after the relevant regulatory approvals have been obtained, after which the two companies will continue to use the Godrej brand.
Prima facie, analysts said the group arrived at an amicable agreement and there is a lot more clarity in the current restructuring now than what was speculated earlier.
«The restructuring takes off the confusion among investors and it is a welcome move. As time goes by, there will be more clarity among shareholders as the group has a complex structure that has legs in both the listed and unlisted market,» said Kranthi Bathini of Wealth Mills.
Under the new arrangement, Godrej Enterprises will be headed by 75-year-old Jamshyd Godrej as chairperson and managing director and his niece Nyrika Holkar as executive director.
Godrej family seals terms of division; Nyrika Holkar, Pirojsha Godrej emerge key next generation leaders
Jamshyd Godrej was earlier serving as managing director and chairman of Godrej & Boyce, the privately held company, founded in 1897.
Nadir Godrej, 73, will serve as chairperson of Godrej Industries, which operates through listed companies including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences.
