Share prices of Godrej Ind, Godrej Properties, Astec Lifesciences drop | Stock Market Today- QHN

Godrej Industries shares fell by 7 per cent to Rs 893 a piece, while Godrej property’s shares fell by 4.4 percent to Rs 2,532 per piece.

The share price of Astec Lifesciences fell 4.1 per cent to Rs 1,235 per piece.

The open offer price is below the current market price of Rs 1,235 a share which led to investors losing interest in the stock, say brokers. The GIL shares fell as investors were expecting an upside due to the family settlement, they said.

“The Vikhroli land will now be entirely owned by Godrej & Boyce (G&B), and Godrej Properties (GPL) will be the development manager for the land as and when G&B develops it. The group has been working on this restructuring for the past few years, and there has been speculation regarding the split of the prime Vikhroli land between G&B a GPL. The announced restructuring puts this to rest, and also rules out any potential option value to GPL that could have emerged from the Vikhroli land,” CLSA said.

“In our estimates and valuation, we have considered GPL as the development manager for the Vikhroli land. Thus, our estimates and target price are unchanged,” the report said.

GPL had mentioned in the past that it will act as the development manager for the Vikhroli land.

However, due to the structure of The Trees project, where GPL had a joint development agreement (JDA) with G&B and later GPL bought the land from G&B, there had been speculation regarding the split of the prime Vikhroli land between G&B and GPL especially due to its large scale development potential of 1,000 acres /100 million square feet.

The settlement puts that speculation to rest, the report said.

First Published: May 02 2024 | 8:44 PM IST