Vadilal Industries shares up 10% after board approves purchase of Vadilaal brand

The company s board approved the purchase of the Vadilal brand from its promoter group entity Vadilal International, and the stock of Vadilal Industries went up over 10 per cent today. The board also approved selling certain non-core assets and business of the company to the promoters and a contract manufacturing agreement with the latter, as per an exchange filing.

The shareholders approval and the finalisation of terms are what the above transactions are subject to.

The stock of Vadilal Industries rose 10.38% on the BSE to an intraday high of Rs 2739.55. The stock was 2.9% lower at Rs 2410 against the previous close of Rs Vadilal shares. The stock has gained 158% in the last year and has gone up 183.46% in 2022, as compared to the previous close of 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock erased half of its gains and ended up 3.89% higher at Rs 2,578 after closing the stock up 3.89% higher. It was 60 on the BSE. The firm's market cap was increased to 1,853. 45 crore.

The considerations to be paid by VIL for the purchase of the brand name, and the amount to be received from the promoter for the sale of its non-core assets are not disclosed.

After the execution of the agreements, these will be made public to shareholders, the company said.

The Vadilal brand was licensed in 2012 by the promoter Vadilal International to Vadilal Industries and its distributor Vadilal Enterprises.

Vadilal Industries Limited is an India-based company that is engaged in the business of producing ice cream, flavored milk, frozen dessert, processed foods, and other dairy products.