Godrej Ind gets board’s approval to raise ₹3,000 crore via NCDs, bonds; stock gains

Shares of Godrej Industries gained over 1% on Wednesday after the holding company of the Godrej Group received its board approval for fundraising. The company plans to raise ₹3,000 crore in one year in one or more tranches through issuance of unsecured non-convertible debentures (NCDs), bonds, or other instruments on private placement basis. The proposal is subject to the shareholders’ approval.

 “The Board of Directors have approved raising of funds by way of issuance of Unsecured NonConvertible Debentures (NCDs) / Bonds / Other Instruments, listed and / or unlisted, on private placement basis, in one or more tranches, for an amount not exceeding ₹3,000 Crore (Rupees Three Thousand Crore Only), during the period of 1 (One) year from the date of approval by the Shareholders,” Godrej Industries said in BSE filing on Tuesday.

The release further notes that its board has authorised the management committee to determine the detailed terms and conditions of the issue, including the issue price of the NCDs, bonds and other instruments and take all necessary steps related to the proposed issue.

Boosted by fundraising plan, Godrej Industries shares gained as much as 1.26% to ₹882.65, while the market capitalisation rose to ₹29,525 crore. Early today, the Godrej Group stock opened higher at ₹881.60 against the previous closing price of ₹871.60 on the BSE.

The shares of Godrej Industries touched its 52-week high of ₹989.90 on May 2, 2024, after the Godrej family announced to split the 127-year old conglomerate into two branches. The stock touched its 52-week low of ₹471.05 on August 8, 2023.

The development came months after the Godrej Group 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 conglomerate, 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.

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