Jyothy Laboratories has soared 17% to Rs 184, its record high since listing on December 2007 on the National Stock Exchange.
The stock opened at Rs 159 and has seen over three-fold surge in trading volumes. A combined 828,425 shares have already changed hands on the counter in morning trades against an average 220,000 shares that were traded daily in past two weeks on both the exchanges.
The stock of household products maker has outperformed the market by appreciating 57% after the company announced the amalgamation of Henkel India (HIL) on June 13, 2012. The benchmark index Nifty has gained 4.7% during the same period.
The acquisition of HIL has provided Jyothy Laboratories a combined basket of 10 consumer products brands which include Ujala, Maxo and Exo from Jyothy's stable and Henko, Pril, Fa, Margo, Mr. White, Neem and Chek from Henkel.
“This merger is expected to provide synergies in cost, marketing and distribution, and management expects the combined entity to post a growth of 50%” said analyst at Angel Broking.
