Shares of fast moving consumer goods companies (FMCG), mainly multinational companies like Procter and Gamble Hygiene and Healthcare (P&G) andColgate-Palmolive (India) hits record high and have rallied more than 6% each on the Bombay Stock Exchange (BSE). P&G surged 8% to Rs 2,670 and Colgate-Palmolive (India) soared 6.5% to Rs 1,449 on the BSE.
A sharp surge in these stocks were seen after London-based GlaxoSmithKline on Monday announced a $940-million (Rs 5,220-crore) open offer to raise its stake in its consumer products company in India — GlaxoSmithKline Consumer Healthcare — from 43.2% to 75%.
GSK said it would pay Rs 3,900 per share to the shareholders tendering their shares in the open offer, to begin in January next year. The open offer price is 28% premium against Friday’s closing of Rs 3,043 on the BSE.
Colgate Palmolive Company, along with Colgate Palmolive Asia Pte Ltd collectively held 51% stake in Colgate-Palmolive (India), the BSE data shows. Procter & Gamble Asia Holding BV holds 71% stake in its Indian unit P&G as on September 30, 2012.