Godrej Industries increases holding in Godrej Capital to 89.48%; share price gains

Godrej Industries: The company has increased its stake in subsidiary Godrej Capital to 89.48 percent, up from 87.23 percent earlier. It has bought the said 2.25 percent stake from June 2023 to February 2024. Godrej Capital is a core investment company that holds equity shares of Godrej Housing Finance and Godrej Finance.

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Godrej Industries share price rose in early trade on March 1 after the company increased its stake in its subsidiary Godrej Capital Limited (GCL).

At 09:39 am, Godrej Industries (GIL) was quoting at Rs 811.45, up Rs 10.50, or 1.31 percent, on the BSE.

GIL has increased its stake by 2.25 percent from 87.23 percent to 89.48 percent. Total paid up share capital of GCL as on date is Rs 33,29,780 and the total consolidated income of GCL for the financial year ended March 31, 2023 was Rs 34,690.81 Lakh.

The company has acquired 26,229 fully paid up equity shares of face value of Rs 10 each by way of rights issue done by GCL, with GIL fully subscribing to it.

The said acquisition of equity shares of GCL is done for a total consideration of Rs 284.73 crore and it is a primary infusion of capital in to GCL (and not a secondary purchase / sale), company said.

GCL is a core investment company which holds equity shares of Godrej Housing Finance Limited and Godrej Finance Limited.

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Earlier, Godrej Industries had acquired 30,635 shares on June 2, 2023, 26,251 shares of September 21, 2023 and 694 shares of November 1, 2023.

In an another development, the company board approved the allotment of 50,000 Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures (NCDs) with a face value of Rs 1,00,000 each, aggregating to Rs 5,00,00,00,000 (Series 1 Debentures) and 50,000 NCDs having a face value of Rs 1,00,000 each, aggregating to Rs 5,00,00,00,000 (Series 2 Debentures) to the identified investors as approved by the Committee on February 27, 2024.

The proceeds from the both issues are proposed to be used for business purposes, investments in body corporate(s), repayment/pre-payment of certain loans and for general corporate purposes.

In January the company signed a non-binding memorandum of understanding (MoU) with the Gujarat government to invest Rs 600 crore over the next four years to expand operations in Valia.

The company posted a 66 percent fall in its quarterly net profit at Rs 106.41 crore in December 2023.

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