MUMBAI, Aug 13: Godrej Soaps Ltd (GSL), the flagship company of the Adi Godrej group, is planning a major restructuring of its holdings in the group companies by bringing them directly under the GSL umbrella. Adi Godrej and his family members will now directly hold equity in Godrej Hi-Care and Godrej Foods instead of subsidiaries' holding.

Analysts say that a merger of all group companies under GSL cannot be ruled out at a later date. According to annual general meeting notices sent to GSL shareholders, the company has indicated the forthcoming changes and sought shareholders nod to invest another Rs 53 crore in Godrej Hi-Care, Rs 22 crore in Godrej Foods Ltd and Rs 25 crore in buy back of shares.

With the Rs 22 crore infusion, the shareholding of the Godrejs in GFL will increase by over 41.16 per cent and it said that it plans to increase it to a majority stake of more than 50 per cent by acquiring shares from other shareholders at a later date. Presently, Godrej Capital and Ensemble Investments, the 100 per cent subsidiaries of GSL are holding these shares.

``This will enable consolidation of GFL accounts with GSL accounts as when companies Bill is enacted and becomes effected,'' says the company. ``This gives clear indication that a merger is on the cards,'' say analysts with a FII.

About the Godrej Hi-Care, GSL says that as on March 31, GSL holds 50.01 per cent shareholding in the company. After sale of 11 per cent stake to the multinational Sara Lee, GHCL has ceased to be a Godrej Soaps subsidiary. As on date another 7.54 per cent of equity is held by Sahyadri Aerosols Ltd (SAL), which is a 100 per cent subsidiary of GSL.

The Godrejs now plan to hold the 7.54 per cent equity in GHCL directly instead of a subsidiary SAL holding the equity. GFL says that due to long-term prospects of GHCL, as and when it gets an opportunity of acquiring shares from any other shareholders, it will avail of such opportunity.

In order to tighten their grip over the flagship company, the Godrejs are planning to buy-back its equity shares in GSL investing another Rs 25 crore.

``Such a buy-back will provide the company an excellent risk-free opportunity of deploying funds advantageously as compared to other investments. It also reduces the cost of servicing the capital of the company and helps to boost return to the public shareholders,'' GSL says.

The annual general meeting of the shareholders of GSL will be held in Mumbai on September 15.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.