Shares of Godrej group companies saw mixed trends on Thursday's trade after the founding family of the group reached an agreement to split the conglomerate into two branches.
Shares of Godrej Industries plunged over 7 per cent while Godrej Properties Ltd declined over 6 per cent. Shares of Astec Lifesciences too declined over 3 per cent.
Meanwhile, shares of Godrej Agrovet jumped nearly 3 per cent and the scrip of Godrej Consumer Products was trading flat.
The group has been split between two branches of the founding family, with Adi Godrej and his brother Nadir on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other.
Adi Godrej and his brother Nadir will have five listed firms, including Godrej Industries and Godrej Properties, while cousins Jamshyd and Smita will get unlisted Godrej & Boyce and its affiliates as well as a land bank, including a prime property in Mumbai.
Godrej Industries Group (GIG), which includes listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences, will have Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families.
Godrej Enterprises Group—comprising Godrej & Boyce and its affiliates that have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software—will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita's daughter Nyrika Holkar will be the executive director.
The Godrej family termed the split as "an ownership realignment" of the shareholdings in the Godrej companies.
"The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgment of the differing visions of the Godrej family members," it had said in a statement on Tuesday.
