Godrej Industries Limited (GIL) has increased its shareholding in its subsidiary, Godrej Capital Limited (GCL), from 90.89% to 91.11% through a rights issue. This move strengthens GIL's position in the financial services sector and demonstrates its commitment to growing its investment in GCL.

Key Details of the Transaction

About Godrej Capital Limited

Godrej Capital Limited is a Core Investment Company that holds equity shares in Godrej Housing Finance Limited and Godrej Finance Limited. The company has shown significant growth in its total consolidated income over the past three years:

This substantial increase in income highlights the rapid growth and potential of GCL in the financial services sector.

Transaction Details and Implications

The acquisition was completed through a cash transaction, with GIL fully subscribing to the rights issue conducted by GCL. This primary infusion of capital is expected to support GCL's growth plans and strengthen its position in the market.

The transaction was conducted at arm's length, ensuring fairness and transparency in the deal between the parent company and its subsidiary. This move aligns with Godrej Industries' strategy to expand its presence in the financial services sector through its core investment company, GCL.

As per the regulatory filing, the acquisition falls within the overall limit approved by GIL's shareholders for making investments in GCL under Section 186 of the Companies Act, 2013, ensuring compliance with legal and regulatory requirements.

This strategic investment by Godrej Industries in Godrej Capital underscores the company's confidence in the growth potential of its financial services arm and its commitment to strengthening its position in this sector.

Godrej Industries Limited , a prominent Indian conglomerate, has successfully raised ₹800 crore through the issuance of non-convertible debentures (NCDs) via private placement. The company's Management Committee approved the allotment on September 22, 2025, marking a significant move in its financial strategy.

Debenture Details

The NCDs were issued in two series, each with distinct characteristics:

Key Features

• Type of Instrument: Both series comprise rated, listed, unsecured, redeemable non-convertible debentures.
• Deemed Date of Allotment: September 22, 2025
• Coupon Payment Schedule: Annual payments on September 22 each year, with the final payment on the respective maturity dates.
• Redemption: The NCDs will be redeemed at a price of ₹1,00,000 per debenture on their respective maturity dates.

Use of Proceeds

Godrej Industries has outlined that the funds raised through this issuance will be utilized for various purposes, including:

1. Business operations
2. Investments in body corporates
3. Repayment or pre-payment of certain loans
4. General corporate purposes

Market Impact

This substantial fundraising effort by Godrej Industries demonstrates the company's strong financial position and its ability to attract investors in the debt market. The successful placement of ₹800 crore worth of NCDs indicates investor confidence in the company's long-term prospects and financial stability.

The issuance of these long-term debt instruments allows Godrej Industries to optimize its capital structure and potentially fund future growth initiatives. With tenors of over 5 years for both series, the company has secured medium to long-term financing at a competitive interest rate of 7.89% per annum.

As Godrej Industries continues to strengthen its financial position, market observers will be keen to see how the company deploys these funds to drive growth across its diverse business segments.