Vadilal Industries shares rally 11% on report Bain Capital may buy controlling stake

Shares of Vadilal Industries jumped 11 per cent in Monday's trade but those of Vadilal Enterprises fell amid reports Bain Capital is in talks with the promoters to buy a controlling stake in the two companies. Sources told CNBC Vadilal’s ice cream business is valued at Rs 3,000 crore, as per deal talks.

As per the report, Bain Capital is 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, the CNBC report suggested. Vadilal Industries, the report said, had taken shareholder nod to buy brand from promoters.

Shares of Vadilal Industries jumped 10.87 per cent to hit a high of Rs 3,076.95 on BSE. Shares of Vadilal Enterprises closed at Rs 3,805.10, down 1.67 per cent.

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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