Don’t miss the latest developments in business and finance.

Emami drops after inking deal to acquire Hair & Scalp Care Business of 'Kesh King'

Image
Capital Market
Last Updated : Jun 03 2015 | 12:02 AM IST

Emami lost 5.73% to Rs 1,067 at 15:18 IST on BSE after the company entered into an agreement with Sanjeev Juneja to acquire his hair & scalp care business under the 'Kesh King' and allied brands.

The announcement was made during market hours today, 2 June 2015.

Meanwhile, the BSE Sensex was down 658.22 points, or 2.36%, to 27,190.77

On BSE, so far 26,021 shares were traded in the counter, compared with an average volume of 12,508 shares in the past one quarter.

The stock hit a high of Rs 1,146 and a low of Rs 1,044 so far during the day. The stock hit a 52-week high of Rs 1,160 on 1 June 2015. The stock hit a 52-week low of Rs 448 on 6 June 2014.

The large-cap company has an equity capital of Rs 22.70 crore. Face value per share is Re 1.

More From This Section

Emami said that the company today, 2 June 2015 entered into an agreement with Sanjeev Juneja to acquire his hair & scalp care business under the 'Kesh King' and allied brands. The acquisition marks the company's foray in the Ayurvedic Hair & Scalp Care segment which is growing at a rapid pace, Emami said. The transaction envisages transfer of the business as going concern on a slump sale basis and will include brand portfolio of ayurvedic medicinal oil, herbal shampoo & conditioner and ayurvedic capsules along with its respective formulations and all related assets, rights and liabilities including working capital for a total consideration of Rs 1651 crore, the company said.

Harsha V Agarwal, Director, Emami said the acquisition of Kesh King business offers great synergy with the company's business of personal & healthcare products. This acquisition is a part of the company's aggressive growth strategy, he added.

N H Bhansali, CEO-Finance, Strategy & Business Development, Emami said that the acquisition will be funded by a judicious mix of surplus funds, short term & long term debt and the process is expected to be completed in a month's time.

On a consolidated basis, Emami's consolidated net profit rose 24.5% to Rs 138.33 crore on 25.7% growth in total income to Rs 583.31 crore in Q4 March 2015 over Q4 March 2014.

Emami is one of India's leading FMCG companies engaged in manufacturing & marketing of personal care & healthcare products. With 250 diverse products, Emami's portfolio includes trusted power brands like Zandu, BoroPlus, Navratna, Fair & Handsome, Mentho Plus, Fast Relief and Sona Chandi Chyawanprash and new brands like 'HE' Deodorant & Emami 7 Oils in One. The company has recently forayed into feminine hygiene space by acquiring 'SHE Comfort' sanitary napkin brand.

Powered by Capital Market - Live News

Also Read

First Published: Jun 02 2015 | 3:27 PM IST

Next Story