Godrej group’s new holding firms boost capital base

The Godrej Group is strengthening the capital structure of its two new holding companies — Vora Soaps and Godrej Seeds and Genetics.

Group Chairman Adi Godrej’s daughter Nisaba Godrej, who joined the boards of these companies before taking over as chairman of the listed Godrej Consumer Products (GCPL) recently, signed key resolutions, including those amending the memorandum and the articles of these companies and issue of fresh shares. These resolutions have been passed by the shareholders of the respective companies, recent filings with the Ministry of Corporate Affairs showed.

Nisaba, 38, along with her elder sister Tanya Dubash, 48, and their aunt Smitha Crishna (Adi Godrej’s cousin), became director of Vora Soaps and Godrej Seeds and Genetics in mid-March.

Following this, Godrej & Boyce, another group firm managed by Adi Godrej’s cousin Jamshyd Godrej and family, transferred shares it held in the group’s listed firms to these new holding companies.

Now, between them, Vora Soaps and Godrej Seeds own substantial promoter shares of the group’s listed entities.

Vora owns 57.7 per cent in Godrej Industries, while Godrej Seeds owns 27.5 per cent of GCPL. Godrej Industries, in turn, controls Godrej Properties and owns about 23.8 per cent shares of GCPL. The three listed firms have a combined market capitalisation of over ~90,000 crore as of Friday.

In contrast, the new holding companies were thinly capitalised and were reporting losses in the recent past. Vora Soaps had a net worth of ~9.7 lakh, according to its last annual report. But, the group has taken steps to address that.

Days after the induction of the new board members, the authorised capital of Vora Soaps was increased by over 20 times and a provision for issue of preference shares was introduced, filings showed.