statesman news service
Mumbai, 5 July
The Hindustan Unilever Limited stock today soared to a record high on the National and Bombay Stock Exchanges following the report that the parent company Unilever plc has increased its stake in the domestic subsidiary from 52.48 per cent to 67.28 per cent through open offer buying of HUL shares at Rs 600 each.
The HUL stock on the NSE increased steeply by 5.1 per cent to Rs 632 in early trade today. On the BSE it peaked at Rs 631.
However, in later part of the day, the stock closed paring gains at Rs 609.35, still up 1.32 per cent on the NSE and at Rs 609.40, up 1.44 per cent on the BSE.
The Anglo-Dutch Unilever Plc, manufacturers of FMCG, bought 14.8 per cent share in open market deals spending euro 2.45 billion.
It had earlier proposed to buy 22.5 per cent additional stake to take its total holding in HUL to 75 per cent. However, Unilever Plc on Thursday declared closure of the open offer.
Its CEO Mr Paul Polman in a statement said: “We are pleased to have received such a good response to our voluntary open offer and that will significantly increase our stake in HUL, an excellent Indian business with a proud heritage.”
Unilever also declared that it has no further plan to increase its stake in the Indian unit.
It had announced its plan to take its stake up to 75 per cent in January this year when it increased the burden of royalty on the Indian uint to 3.15 per cent from 1.4 per cent.
Analysts say considering the continuing depreciation in the rupee, response to the Unilever bid had been fairly good.