HUL Board approves formation of new subsidiary; stock surge

The shares of country’s largest Fast Moving Consumer Goods (FMCG) company-Hindustan Unilever Ltd (HUL) surged higher on receiving an approval to form a new fully-owned subsidiary.

The company in a press release filed to the stock exchanges on Monday after the market hours stated that its board has approved to form a new 100 per cent subsidiary of the company. This company will be incorporated with an authorised share capital of Rs 2,000 crore. The management in the press release said that the new subsidiary has been formed with an aim to leverage growth opportunities in a fast-changing business environment and will help the company in becoming more agile and customer-focussed.

The stock has been the top performers during the last one year. It has given 23 per cent returns over the last one year, as compared to just ten per cent surge in Sensex. The stock has also outperformed its peers such as Godrej Consumer Products and Emami, which declined by 13 per cent to 34 per cent since last February. Its stock recently touched its 52-week high of Rs 2,307 on BSE.

At 10.30 am on Tuesday, the stock traded at Rs 2,250 per share, higher by 1.53 per cent.