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Godrej Consumer turns volatile after completing acquisition in Kenya

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Capital Market
Last Updated : Dec 22 2016 | 12:01 AM IST

Godrej Consumer Products was up 0.15% to Rs 1,450.15 at 11:42 IST on BSE, with the stock witnessing high volatility after the company said it has completed the acquisition of balance 49% equity stake in Charm Industries, kenya.

The announcement was made after market hours yesterday, 20 December 2016.

Meanwhile, the S&P BSE Sensex was up 32.69 points or 0.12 % at 26,340.67.

On the BSE, 1,569 shares were traded on the counter so far as against the average daily volumes of 8,184 shares in the past one quarter. The stock was volatile. The stock rose as much as 3.23% at the day's high of Rs 1,494.90 so far during the day. The stock lost as much as 0.36% at the day's low of Rs 1,442.75 so far during the day.

The stock had a hit record high of Rs 1,710 on 16 September 2016 and a 52-week low of Rs 1,120 on 27 January 2016. The stock had outperformed the market over the past one month till 20 December 2016, advancing 1.88% compared with the Sensex's 0.6% rise. The scrip had, however, underperformed the market over the past one quarter declining 11.47% as against the Sensex's 7.77% fall.

The large-cap company has equity capital of Rs 34.06 crore. Face value per share is Rs 1.

Charm Industries is a manufacturing company incorporated in Kenya. This acquisition helps Charm Industries to scale up wet hair care business in East Africa using the strength of nature brands. The acquisition comes into force with immediate effect. The consideration for the acquisition was payable in cash.

Godrej Consumer Products' consolidated net profit rose 43.7% to Rs 318.12 crore on 11.4% rise in net sales to Rs 2357.52 crore in Q2 September 2016 over Q2 September 2015.

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Godrej Consumer Products is one of the leading fast moving consumer goods (FMCG) companies in India.

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First Published: Dec 21 2016 | 11:39 AM IST

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