Hindustan Foods shares zoom 15% after stake sale via block deal
FMCG major Hindustan Foods (HFL) surged 15% today on BSE to Rs 582.50 after a likely equity stake sale of 11.1% via a block deal on Wednesday. The deal size is said to be approximately worth Rs 720 crore.
Westbridge, Sixth Sense are among a few PE investors that are likely to be the sellers in the transaction. However, the official details of the buyers and sellers are not currently known.
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Hindustan Foods is an India-based company, which is engaged in contract manufacturing of various FMCG products including food, home care, personal care, and beverages etc. They also ventured into manufacturing leather shoes and accessories.
HFL was established as a result of Dempo Group’s foray into the FMCG segment through a joint venture with Glaxo India.
For the quarter ended March 2024, Hindustan Foods had reported an increase of 13% on a year-on-year basis (YoY) in its profit after tax (PAT) which stood at Rs 22.9 crore while its revenues stood at Rs 734.4 crore, which was an increase of 11% YoY.
For the full financial year 2024, the company’s PAT increased by 31% YoY at Rs 93 crore.
The company has also commenced the trial production of sports shoes at two new locations in the south and expects to ramp them up in Q2FY25.
The shares of the company have surged 4% in the last one year but shown a decline of 0.50% in the current year so far. In the last week, the stock increased by 12% as per the BSE analytics.
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