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Godrej plans two IPOs to boost valuation

#Taxation & Finance News#India
Last Updated : 27th Apr, 2026
Synopsis

Godrej Industries Group plans to list two additional businesses over the next five years as part of a strategy to more than double its market capitalisation to over INR 5 lakh crore. The move follows the group’s recent restructuring after the family business split. The group will invest between INR 5,000 crore and INR 7,000 crore in its unlisted businesses while focusing on strengthening existing verticals rather than diversifying. Currently, its three listed entities account for over INR 1.60 lakh crore in market value, with unlisted businesses contributing an additional INR 25,000 crore. The group is also targeting significant expansion in its financial services arm, alongside maintaining steady growth across consumer, real estate and agri businesses through organic strategies and selective acquisitions.

Godrej Industries Group is planning to list two additional businesses over the next five years as it targets to more than double its market capitalisation to over INR 5 lakh crore, according to its chairman designate Pirojsha Godrej.


The group outlined its strategy in the past week, indicating that the listings will be part of a broader effort to strengthen its capital base and scale existing operations following the restructuring of the Godrej family business. The conglomerate currently has three listed entities—Godrej Consumer Products, Godrej Properties and Godrej Agrovet—with a combined market capitalisation exceeding INR 1.60 lakh crore. Its unlisted businesses contribute an estimated INR 25,000 crore in additional value.

Pirojsha Godrej indicated that the group intends to list two out of its three unlisted businesses, with its capital and chemicals verticals emerging as the likely candidates. He added that the group is maintaining flexibility in its listing strategy and will not pursue a public offering for all its businesses at once.

The third unlisted business, Godrej Ventures, is a relatively new platform that is developing a modern film studio near the Navi Mumbai International Airport and also manages office assets. The group is expected to continue scaling this business before considering any listing decision.

The company stated that it plans to invest between INR 5,000 crore and INR 7,000 crore over the next five years in its unlisted businesses, while its listed entities will fund their own growth. The strategy focuses on strengthening existing verticals rather than entering new sectors, with an emphasis on improving profitability and financial returns.

Godrej Industries Group also highlighted the growth trajectory of its financial services arm, Godrej Capital, which has already received investments of around INR 5,000 crore. The group is targeting an increase in assets under management to INR 1 lakh crore from the current INR 25,000 crore, making it one of the fastest-growing verticals within the portfolio.

On expansion strategy, the group indicated that growth will largely be organic, with selective acquisitions aimed at enhancing product offerings or entering adjacent categories. The consumer products business is expected to remain active in acquisitions, particularly to expand into new segments, while the financial services arm may explore new verticals, including microfinance, through targeted investments.

The group has also set performance benchmarks across its businesses, targeting 15% growth in sales, 20% growth in earnings per share and an 18% return on equity. It reported that it has achieved over 20% growth in both sales and post-tax profits annually over the past five years.

In addition to financial targets, the group outlined social and organisational goals, including increasing workforce diversity to 40% representation from women, persons with disabilities and LGBTQI individuals by 2031. It has also committed an additional INR 1,000 crore to its philanthropic arm to scale up social spending.

The group indicated that its future strategy will remain focused on execution, financial discipline and strengthening its core businesses.

Source - PTI



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