Godrej Industries on Tuesday said its subsidiary Pyxis Holdings has acquired majority stake in group firms Godrej Housing Finance Ltd (GHFL) and Ensemble Holdings and Finance Ltd (EHFL).
The move would help Godrej group, which is looking at expanding and diversifying its business activities such as Housing Finance Business, said a regulatory filing by Godrej Industries Ltd.
"The total consideration paid for the acquisition of GHFL is Rs 405.9 crore," it said.
While shares of EHFL were transferred by the company to Pyxis Holdings for a consideration of Rs 5.73 crore in a transaction between related parties.
"Accordingly, EHFL has ceased to be a direct wholly-owned subsidiary of the company and has become a step-down subsidiary of the company with Pyxis being the immediate holding company for EHFL. The company holds 85 per cent stake in Pyxis," said Godrej Industries Ltd (GIL).
GIL is a holding company of the Godrej Group. It has significant interests in consumer goods, real estate, agriculture, chemicals and financial services through our subsidiary and associate companies, it added.
"It believes that there is a strong potential for housing finance and non-banking finance business in our country with a decent return on investments. The housing finance business in India has been growing at a steady pace," the filing said.
Entering the financial services space will diversify the company's business and would lead to overall value creation for the stakeholders of the company in the future, it added.
According to the company, the Reserve Bank of India (RBI) has given the approval for change in control of EHFL and GHFL vide its letters dated June 2, 2021, and July 20, 2021, respectively.
Consequent to the approval of the RBI, Pyxis Holdings, a subsidiary of the company, has acquired a 95 per cent stake of GHFL from Anamudi Real Estates LLP.
"Further, Pyxis has acquired 100 per cent stake of EHFL from the company.
"Accordingly, EHFL has ceased to be a direct wholly-owned subsidiary of the company and has become a step-down subsidiary of the company with Pyxis being the immediate holding company for EHFL. The company holds 85 per cent stake in Pyxis," it said.
It added that "pursuant to the aforesaid transaction, the company holds 95 per cent of the total shares of GHFL and 100 per cent of the total shares of EHFL through Pyxis.