Shares of Godrej Industries rose 10% on August 13 on the firm's June quarter results and decision to transfer stake in Godrej Capital Ltd (GCL) to new wholly-owned arm Godrej FS Ltd (GFSL).
The firm said its net profit rose 8% in Q1FY26 to Rs 349 crore as compared to Rs 322 crore a year ago.
The firm's revenue rose 5% to Rs 4,460 crore in the June quarter as compared to Rs 4,248 crore in the year-ago period.
Godrej Industries said it will sell entire stake in GCL to new subsidiary GFSL and the transaction has been valued at up to Rs 4,000 crore.
Indicative time period for completion of the acquisition is one year.
At 2:47 pm on August 13, Godrej Industries shares rose 8.73% to Rs 1,191 apiece.
Godrej Industries Ltd is also planning initial investment of up to Rs 5,000 crore in GFSL.
Godrej Industries said it is looking at expanding and diversifying its business activities and the divestment aligns with its strategy to expand financial services business. It "believes that there is strong potential for financial services business in our country with a decent return on investments".
Post-transaction, GCL will no longer be a Material Unlisted Subsidiary of Godrej Industries.
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