Godrej Industries’ Bold Move: Boosts Stake in Capital Arm as Profits and AUM Soar

In a strategic move to consolidate its presence in the financial services sector, Godrej Industries Limited (GIL) has increased its stake in its subsidiary, Godrej Capital Limited (GCL), from 89.48% to 90.89%. This transaction, conducted at arm’s length and within shareholder-approved investment limits under Section 186 of the Companies Act, 2013, further cements GIL’s commitment to scaling its financial services business.

 

Key Highlights:

 

Shareholding Update: GIL now holds 90.89% in GCL, up from 89.48%. The total paid-up share capital of GCL stands at ₹40,45,250.

 

Financial Performance: For the financial year ended March 31, 2025, GCL reported a total consolidated income of ₹1,620.20 crore. Despite a standalone net loss of ₹65.45 lakh, its consolidated profit before tax reached ₹161.21 crore, reflecting the profitability of its key subsidiaries.

 

Core Investment Focus: GCL operates as a core investment company, primarily holding equity in Godrej Housing Finance Limited and Godrej Finance Limited. Both subsidiaries have turned profitable, contributing significantly to GCL’s consolidated results.

 

Growth Ambitions: GCL’s assets under management (AUM) surpassed ₹15,000 crore in January 2025. The company is on track to double its AUM to ₹30,000 crore by March 2026, driven by robust growth in housing finance and SME lending.

 

Related Party Transaction: The acquisition is a related party transaction, but it is conducted at arm’s length and aligns with regulatory and shareholder mandates.

 

Promoter Activity: Separately, Godrej Industries’ promoter group recently increased its holding in the parent company, signaling ongoing confidence in the group’s diversified growth strategy.

 

This move underscores Godrej Industries’ strategic intent to nurture its financial services vertical, positioning GCL as a key growth engine within the conglomerate’s portfolio.

 

Source: Godrej Capital Limited Annual Report 2024-25; Times of India; Moneycontrol