Adi-Nadir Godrej family to buy 12.65% in Godrej Ind as part of family pact

Members of the Adi Godrej and Nadir Godrej families will acquire cousin Rishad Naoroji’s 12.65% stake in Godrej Industries as part of the family settlement that was announced two months ago, the firm said in a stock exchange filing on Tuesday.

The transaction, which will be executed in block deals, at a weighted average price of Rs 858.09 per share, will be valued at Rs 3,653 crore. Based on Tuesday’s closing price of Rs 897.80 apiece on the BSE, the value of Naoroji’s shareholding, which is part of RKN Enterprises, a promoter entity of Godrej Industries, is Rs 3,829 crore. This implies that the block deal price is at a discount of about 5% versus Tuesday’s closing price, BSE data shows.

Besides Nadir Godrej, Adi Godrej’s children Pirojsha Godrej, Tanya Dubash and Nisaba Godrej will be acquirers of the stake, the statement said. Their total shareholding in Godrej Industries, which is the holding company of the Godrej Industries Group (GIG), will increase to 43.83% after the block deal from 31.18% now.

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Naoroji, 72, an environmentalist, has shares in entities like Godrej Agrovet, Godrej Consumer, Godrej Properties, besides Godrej Industries, valuing his shareholding at nearly Rs 7,000 crore. These firms are part of the GIG faction created after the family settlement was put in place in May, led by the Adi and Nadir Godrej families. Godrej Enterprises Group (GEG), which will be led by Jamshyd Godrej and his sister Smita Crishna, will have control of Godrej & Boyce along with its affiliates and a substantial land bank located in Vikhroli, Mumbai.

While Nadir Godrej is the chairperson of GIG and Pirojsha Godrej is the vice-chairperson, Jamshyd Godrej is the chairperson and MD of GEG and niece Nyrika Holkar is executive director. Pirojsha Godrej will be handed over charge of GIG in 2026. Holkar is also likely to be elevated within GEG by then.

At the time of the announcement of the family pact in May, the Adi-Nadir Godrej family had indicated that they would acquire Naoroji’s 12.65% stake in Godrej Industries in a bid to consolidate their holding. The Adi-Nadir Godrej faction had also said that they would pick up a 20.84% stake from Jamshyd Godrej-Smita Crishna families to untangle cross-holdings.