Shares of Vadilal Industries soared 8.66% to Rs 4,990 in Monday’s trade after the company disclosed that its promoter families have reached a settlement to end a prolonged internal dispute. The Gandhi family members—Rajesh R. Gandhi, Janmajay V. Gandhi, and Devanshu L. Gandhi—have signed a “memorandum of family arrangement” aimed at separating ownership from management and appointing a professional team to lead operations.
As per the agreement, family members will step down from key management roles like CFO and MD, assuming the position of executive directors. The board will be reconstituted to include four independent directors. This move is expected to enhance corporate governance and maximize shareholder value.
The promoters also plan to consolidate the ownership of the “Vadilal” brand within the company by merging promoter-held entities—Vadilal Finance Company, Veronica Constructions, and Vadilal International, which owns the brand—into Vadilal Industries. The restructuring will help secure permanent brand rights and strengthen the company’s market positioning.
Vadilal’s shares have risen over 28% in the past month, and the latest announcement has further boosted investor sentiment.
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