Shares of this diversified FMCG company gained over 4% after acquiring the plant of 'Dettol' manufacturer
The company is engaged in contract manufacturing of various FMCG products including food, home care, personal care and beverages, further expanding its Healthcare and Wellness Division.
On December 16, 2022 shares of Hindustan Foods Limited ("HFL") jumped by over 4 % from its previous day’s close. The scrip opened on Friday at Rs 721.00 and it touched its daily high at Rs 730.60 which was very close to its 52-week high.
This up move in the stock was a result of an announcement made by the company on December 15, 2022, about the recent acquisition. The company informed that it has signed a Business Transfer Agreement ("BTA") to acquire Reckitt Benckiser Health India Private Limited's ("Reckitt") manufacturing facility in Village Sandholi, Baddi, Himachal Pradesh ("Undertaking") to expand its Health Care & Wellness division. The transfer of the undertaking is expected to be completed by H2 of the calendar year 2023, subject to the fulfilment of the conditions precedent outlined in the BTA.
Hindustan Foods Limited (HFL) was founded in 1988 as a result of the Dempo Group's entry into the FMCG segment through a joint venture with Glaxo India Limited, to produce nutritional food products. In 2013, Vanity Case Group bought a controlling stake in Hindustan Foods Ltd from Dempo Group of Goa and since then the company has diversified across various FMCG categories with manufacturing competencies in food and non-food, extending to cosmetics, personal care and home care products. It plans to keep leveraging India's consumption story through organic and inorganic growth.
Presently, the promoter holding of the company stands at 64.85%, while institutions and non-institutions held 12.59% and 22.56%, respectively and command a market cap of Rs 8,173.85 crore.
The shares of the company touched its 52-week high at Rs 749.15 whereas the 52-week low was at Rs 328.73.
At the time of writing, the shares were trading at Rs 722.10 a piece.
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