Shares of most Godrej group companies surged 2-8 percent on May 2 after the founding family reached an agreement to split the 127-year old conglomerate into two branches.
The family has decided to restructure its shareholding within the conglomerate, dividing operations into two distinct entities: Godrej Enterprises and Godrej Industries.
As part of the split, Adi Godrej and his brother Nadir will stay at the helm of the listed entities which will come under Godrej Industries. On the other hand, cousin Jamshyd Godrej gets the control of unlisted companies and the land bank which will come under Godrej Enterprises.
The conglomerate has five listed entities - Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec LifeSciences. Out of the five, Godrej Consumer Products is the biggest boasting a market capitalisation of Rs 1.26 lakh crore as on April 30.
As part of the restructuring, Adi and Nadir's family will also make an open offer to the shareholders of Astec Lifesciences. The news of the open offer pushed shares of Astec Lifesciences sharply higher, helping the stock record the biggest gains among all Godrej group companies.
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The floor price of the open offer has been fixed at Rs 1,069.75 per share, a 17 percent discount to the previous close. Through the open offer which was triggered under SEBI regulations post the settlement, Adi and Nadir's family will aim to acquire 26 percent stake in Astec for a total of Rs 545 crore.
At 9.22 am, shares of Aster Lifesciences were trading over 6 percent higher while Godrej Agrovet, Godrej Industries, and Godrej Consumer were up 1-4 percent. Godrej Properties was the sole loser within the pack, down around 3 percent.
Meanwhile, the conglomerate also stated that the Godrej trademark will be equally owned and shared by both family groups.
Also Read | Godrej family reaches agreement to split conglomerate into two branches
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