Marico shares hit one-year high on restructuring plan
Mumbai: Shares of FMCG firm Marico on Tuesday rose by nearly 5 percent to one-year high after the company's board approved restructuring of its businesses, corporate entities and the organisation from April 1.
After making a positive opening, shares of the company surged 4.94 percent to Rs 238.7 on the BSE.
At the NSE too, the stock jumped 4.88 percent to Rs 238.50 -- its 52 week high level.
Marico yesterday said it will demerge its Kaya skin care business into a separate entity and list it independently on bourses, as part of the company's business restructuring process.
As part of the restructuring process, the company's Consumer Product Business (CPB) and International Business Group (IBG) will now form a unified FMCG business while Kaya will be re-defined as a separate business, Marico had said.
The company's board has proposed to create two separate companies through partitioning of the current Marico Ltd, into an FMCG business company which is Marico Ltd (already in existence) and a Kaya business company which will be Marico Kaya Enterprises Ltd (MaKE, to be formed).
As a consideration, the shareholders of Marico Ltd as on the record date shall be issued one share of MaKE with a face value of Rs 10 each to be issued at a premium of Rs 200 per share for every 50 shares of Marico with a face value of Re 1 each, it added.
Meanwhile, rally in the stock was in contrast with an overall sluggish stock market where the BSE benchmark Sensex was trading at 19,661.62, down 29.80 points at 1117 hrs.