Godrej Industries to Invest Further in Godrej Properties and Godrej Agrovet
Godrej Industries has announced its intention to make further investments in two of its subsidiary companies: Godrej Properties Limited (GPL) and Godrej Agrovet Limited (GAVL). The company will seek the necessary permission from its shareholders at the upcoming Annual General Meeting (AGM) scheduled for August 11th.
In a communication to shareholders, Godrej Industries stated, “The company decided to invest in its own company like Godrej Agrovet Limited (GAVL) and Godrej Properties Limited (GPL) up to Rs 300 crore, each, as it recognizes it to be a best investment opportunity.’’
About the Companies
GAVL operates within the agricultural business sector, while GPL focuses on real estate development. Godrej Industries currently holds a 56.73% stake in GPL, representing an investment of Rs 726.78 crore. Their investment in GAVL stands at Rs 143.98 crore, reflecting a 60.81% ownership stake.
Shareholder Approval Sought
Beyond the planned ₹300 crore investment in each company, Godrej Industries is also seeking shareholder approval to potentially increase its holdings in both GAVL and GPL. The company is requesting permission to acquire securities, potentially exceeding 60% of each company's "paid-up capital share, free reserves and securities premium account." Alternatively, the company could surpass 100% of each entity's combined "securities premium account and free reserves", whichever measure proves greater.
Reappointment of Managing Director
In addition to the investment proposals, Godrej Industries will also seek approval for the reimbursement and reappointment of N B Godrej as the company's Managing Director for a further three-year term, commencing on April 1st, 2017, and concluding on March 31st, 2020.