Vadilal Industries shares fall after firm clarifies on Bain Capital acquisition reports

Shares of Vadilal Industries Ltd fell nearly 5% in early trade today after the firm clarified on reports that Bain Capital was looking to buy a stake in the company. It said there was no such information.

Vadilal Industries stock slipped 4.79 per cent to Rs 3040 against the previous close of Rs 3193 on BSE. Market cap of the firm fell to Rs 2206 crore. Total 6147 shares of the firm changed hands amounting to a turnover of Rs 1.89 crore. The stock has gained 46.72 per cent in a year and 15 per cent this year. The stock hit a 52-week high of Rs 3298 on July 10, 2023 and fell to a 52-week low of Rs 1800 on April 21, 2023.

In terms of technicals, the relative strength index (RSI) of Vadilal Industries stands at 76.4, signaling the stock is trading in the overbought zone. The stock has a one-year beta of 0.6, indicating very low volatility during the period. Vadilal Industries shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

According to a media report, Bain Capital was in talks with the promoters to buy a controlling stake in the Vadilal Industries and Vadilal Enterprises.

As per the report, Bain Capital was interested in merging the Vadilal entities into one entity. Arpwood had earlier offered to buy stake in Vadilal but the promoter dispute delayed the stake sale in the past, a CNBC report said. Vadilal Industries, the report said, had taken shareholder nod to buy brand from promoters.

Vadilal Industries is a food & beverage company engaged in the business of manufacturing ice-cream, flavoured milk, frozen dessert, other dairy products. It processes and export processed food products such as frozen fruits, vegetable, pulp, ready-to-eat and ready-to-serve products etc. The company has two ice-cream production facilities - one in Gujarat and the other in Uttar Pradesh. The company processes frozen fruits, vegetables and processed foods at factory situated at Dharampur, Valsad in Gujarat.

Vadilal Enterprises, on the other hand, exports of frozen food products. The product range of the company includes vegetables, fruits, fruit pulp, RTS, rotis, parathas and Indian breads, snacks, ready meals, ready mix. It also exports canned products such as fruits, fruit pulp, vegetables. In addition, the compay offers fruit Cocktail, Guava Halves and Mango slices.

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