Reuters Market Eye - IDFC Institutional Securities says investors should subscribe to Unilever's
Unilever plans to pay up to $5.4 billion to raise its stake in its Indian subsidiary, making its biggest deal in 13 years, a huge bet on the strength of demand for personal care and food products in Asia's third-largest economy.
Though its operational concerns on the business remain, IDFC says the new Hindustan Unilever is a leaner organisation than in the FY2001 and upgrades the stock to "neutral," saying the open offer and consequent re-rating will provide support to valuations.
The investment bank adds that other listed FMCG names with foreign parents are likely to follow suit in the future. Nestle India Ltd
Shares in Hindustan Unilever were down 1.4 percent at 12.28 p.m.
(Reporting by Abhishek Vishnoi)
