The acquisition is likely to be completed before March 31, 2023.(File)
Shares of packaged goods company, Dabur, closed with a 3.54 per cent intraday gain on Thursday. The upward trend in the company’s share prices was recorded following its announcement of the acquisition of Badshah Masala. The brand has been an established player in the manufacturing, marketing and export of spices, blended spices, and seasoning.
The acquisition is likely to be completed before March 31, 2023. Opening at Rs 541.50, Dabur’s shares saw a dip in the initial hour of trading, but soon gained momentum and closed around its intraday-high.
Dabur will be acquiring 51 per cent initially and the balance over the period of five years.
“Cost of acquisition of 51 per cent equity shareholding has been agreed at Rs 587.52 crore less proportionate debt as on the closing date (100 per cent enterprise valuation being Rs 1,152 crore which translates to revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 estimated financials),” the company said in a press release.
Dabur has also reported a market share gain across 95 per cent of its portfolio in the second quarter of FY 23.
Led by strong currency growth in Turkey, Nepal and Egypt, Dabur’s international business reported a 12.3% jump in Constant Currency terms.
The company reported a consolidated quarterly revenue of Rs 2,986.5 crore, up by nearly Rs 169 crore from the corresponding quarter of the last financial year. Dabur ended the quarter with a net profit of Rs 490.1 crore.
The board of directors of Dabur India have also announced an interim dividend of Rs 2.50 per share for the current financial year.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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