Vadilal Industries stock zoomed over 10 per cent today after the company’s board on Thursday approved the purchase of the “Vadilal” brand from its promoter group entity Vadilal International. The board also gave its approval for selling ‘certain non-core assets and business’ of the company to the promoters and a contract manufacturing agreement with the latter, as per an exchange filing.
The above transactions are subject to shareholders’ approval and the finalisation of terms, it said.
Vadilal Industries stock touched an intraday high of Rs 2739.55 , rising 10.38% on BSE. However, the stock opened 2.9% lower at Rs 2410 today against the previous close of Rs 2,482 20 .
Vadilal shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages .
The stock has gained 158% in a year and zoomed 183.46% in 2022.
Later, the stock erased over half of its gains and closed 3.89% higher at Rs 2,578.60 on BSE. Market cap of the firm rose to Rs 1,853.45 crore.
Also Read: Share Market News Highlights: Sensex, Nifty settle lower; HCL Tech, TechM, Infosys top drags
The considerations to be paid by VIL for the purchase of the brand name, and that to be received from the promoter for the sale of its non-core assets are not disclosed.
These will be made public to the shareholders after the execution of the said agreements, the company said.
The “Vadilal” brand was reportedly licensed to Vadilal Industries and its distributor company Vadilal Enterprises by the promoter entity Vadilal International in 2012 via a 15-year agreement.
Vadilal Industries Limited is an India-based company, which is engaged in the business of manufacturing ice cream, flavored milk, frozen dessert, processed foods and other dairy products.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today