The acquisition is likely to be completed before March 31, 2023. (file)
Shares of packaged goods company Dabur closed with a gain of 3.54 per cent on Thursday. After the announcement of the acquisition of Badshah Masala, the company’s share prices registered a rise. The brand has been an established player in the manufacturing, marketing and export of Spices, Mixed Spices and Seasonings.
The acquisition is likely to be completed before March 31, 2023. After opening at Rs 541.50, Dabur shares saw a decline in the opening hours of trading but soon gained momentum and closed around their intraday-high.
Dabur will acquire 51 per cent initially and the remaining amount over a period of five years.
“At the cost of acquisition of 51 per cent equity shareholding at Rs 587.52 crore less proportionate debt has been agreed (100 per cent enterprise valuation is Rs 1,152 crore which translates into a revenue multiplier of approximately 4.5x and EBIDTA multiplier of approximately 19.6) for FY2022-23 x of projected financials),” the company said in a . Press release.
Dabur also achieved 95 per cent market share in its portfolio in the second quarter of FY23.
Dabur’s international trade, led by strong currency growth in Turkey, Nepal and Egypt informed of A jump of 12.3% in constant currency terms.
The company reported consolidated quarterly revenue of Rs 2,986.5 crore, an increase of nearly Rs 169 crore over the corresponding quarter of the previous fiscal. Dabur ended the quarter with a net profit of Rs 490.1 crore.
The Board of Directors of Dabur India has also declared an interim dividend of Rs 2.50 per share for the current financial year.
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