KK Modi Family Feud: Investors are eagerly waiting for Godfrey Phillips' AGM tomorrow, where a crucial decision will be made around the company's leadership and inheritance.
Bina Modi, the late KK Modi's wife and current chairperson and managing director of the Godfrey group, has been granted permission by the Delhi High Court to vote on behalf of the family trust at the meeting. The trust holds nearly 47.5 per cent of the company, while global partner Philip Morris International owns just over 25 per cent.
The High Court has rejected all requests from Samir and Ruchir Modi to prevent Bina Modi from voting at the AGM.
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While it is worth pointing out that the rights to appoint the group MD solely lies with the promoters, the court's recent ruling seems to have shifted the inheritance gears in favor of Bina Modi.
Samir Modi, who currently serves as the executive director of the K.K. Modi Group’s flagship company, might be removed from the board by his mother Bina Modi's faction.
On Thursday, the shares of the group closed at Rs 6,385 price level, up by nearly 0.25 per cent on the National Stock Exchange. Interestingly, the inheritance battle between the Samir Modi and Bina Modi seems to have little impact on Godfrey Phillip's share price. On year-to date basis, the shares of the group have delivered multibagger returns of more than 200 per cent on the bourses.
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The conflict also centers around the group's retail arm. Godfrey Phillips is all set to sell its retail business which operates under the '24Seven' brand. The company has inked a term sheet with the retail startup New Shop and hopes to complete the deal by the end of September.
While the Delhi High Court had approved the sale earlier this year, Samir Modi pushed back against the board's decision to move forward with the divestment.
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