The shares of Marico hit a new 52-week high on Thursday to Rs 549.5 after surging for over 3 per cent on the BSE intraday trade, as the FMCG (Fast Moving Consumer Goods) company announces acquisition of 60 per cent in Apcos Naturals, which owns a brand called ‘Just Herbs’.

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Marico in filing to exchanges on Wednesday said, “The Company shall acquire 52.4% of the total paid-up share capital by July 31, 2021, and accordingly, Apcos Naturals shall become a subsidiary of the Company.” 

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“The Company will acquire the balance stake of 7.6% by March 31, 2023, as per the conditions set out in the Shareholders agreement signed between the parties”, the FMCG company further said in a filing.

This equity stake will be acquired over a period of two years, through primary infusion and secondary buy-out, Marico also said in the statement attached with filing. 

Apcos Naturals’ Just Herbs is in a line of pure, bespoke, and Ayurvedic results-driven skin and hair care offerings, made from certified organic and wild-crafted ingredients collected from across India.

All digital brands could contribute low-to-mid single digits to Marico’s earnings by FY24, Citi says while maintaining an overweight stance and sets a target of Rs 595 apiece. It added, after Beardo and Just Herbs, the probability of a food D2C brand under Marico may be high.

While JPMorgan says it is a step towards building at least three Rs 100 cr plus digital brands in three years. The brokerage also maintains an Overweight stance with a price target of Rs 570 per share. It said Marcio is building on a digital-first, mid-premium Ayurvedic BPC portfolio with this acquisition.

At around 10:05 am, the scrip was trading flat buy positive with minor gains of 0.3 per cent to Rs 535 per share on the BSE, as against a 0.24 per cent rise in the S&P BSE Sensex on Thursday.