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HUL drops in early trade

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Capital Market
Last Updated : Mar 19 2016 | 12:01 AM IST

Hindustan Unilever fell 0.38% to Rs 846.10 at 9:17 IST on BSE, with the stock sliding at the onset of the trading session after the company said it has signed an agreement for the sale of its rice exports business to a group company of LT Foods.

The announcement was made after market hours yesterday, 17 March 2016.

Shares of LT Foods were up 7.3% at Rs 239.70.

Meanwhile, the S&P BSE Sensex was up 89.54 points or 0.36% at 24,766.91.

On BSE, so far 1,686 Hindustan Unilever (HUL) shares exchanged hands as against average daily volume of 1.94 lakh shares in the past two weeks. The stock hit a high of Rs 851 and a low of Rs 843 so far during the day. The stock had hit a 52-week high of Rs 950.40 on 13 April 2015. The stock had hit a 52-week low of Rs 765.35 on 27 January 2016.

The large-cap company has equity capital of Rs 216.39 crore. Face value per share is Rs 1.

HUL announced that it has signed an agreement for the sale of its rice exports business carried out primarily under the brands Gold Seal Indus Valley and Rozana to LT Foods Middle East DMCC, a group company of LT Foods. HUL's decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business. The deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing. The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months, HUL said. HUL will continue to manage the business until the completion of the transaction, it added.

HUL's net profit declined 22.4% to Rs 971.40 crore on 3.2% growth in net sales to Rs 7822.86 crore in Q3 December 2015 over Q3 December 2014.

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HUL is a leading fast moving consumer goods (FMCG) company.

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First Published: Mar 18 2016 | 9:15 AM IST

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