Godrej group stocks rise up to 9% post conglomerate's split

Shares of most Godrej group companies opened higher on Thursday, rising up to 9%, a day after the Godrej family announced to split the 127-year old conglomerate into two branches. Among five listed group entities, barring Godrej Properties and Godrej Industries, three others - Godrej Consumer Products, Godrej Agrovet and ASTEC LifeSciences - were trading in the green zone. The group’s total market capitalisation (m-cap) climbed to ₹2.42 lakh crore.

ASTEC Lifesciences, a subsidiary of Godrej Agrovet, which owns a 64.76% stake in the company, was the top performer among the group companies, surging as much as 8.7% to ₹1,400 crore, while its m-cap climbed to ₹2,560 crore.

In a similar trend, Godrej Agrovet shares gained as much as 5.6% to ₹575.05 apiece, pushing its m-cap to ₹10,700 crore. Shares of Godrej Consumer Products rose up to 2.8% to ₹1,253.95, with its m-cap increasing to ₹1.26 lakh crore.

On the other hand, shares of Godrej Industries declined as much as 4.8% to touch a low of ₹914.55, while its m-cap dropped to ₹30,977 crore. Similarly, the stock price of Godrej Properties slipped 4.4% to ₹2,531.80, with its m-cap decreasing to ₹71,262 crore.

In a late-night release on Tuesday, the Godrej family announced restructuring of its shareholding within the conglomerate, dividing businesses into two separate entities - Godrej Enterprises Group (GEG) and Godrej Industries Group (GIG), subject to requisite regulatory approvals. As per the release, the splitting of the group will help maximise strategic direction, focus, agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.

As part of the restructuring, GEG will comprise Godrej & Boyce (G&B) and its affiliates, which will be controlled by Jamshyd Godrej, Chairperson and Managing Director, Nyrika Holkar, Executive Director, and their immediate families.

The vertical has presence across multiple industries spanning aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, EPC Services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, it, software as well as infrastructure solutions.

Meanwhile, GIG, which includes the 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. Pirojsha Godrej will be the executive vice chairperson of GIG and will succeed Nadir Godrej as the chairperson in August 2026.

Commenting on the future outlook, Jamshyd Godrej says, “Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses.”

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