Vadilal stocks on a high
There is unconfirmed news that the promoters of Vadilal group are in advanced talks to sell their entire stake in the ice cream maker and domestic distribution business – Vadilal Dairy, Vadilal Industries and Vadilal Enterprises to a combine of Arpwood Partners and PAG.
This is expected to be an all-cash deal and the business is being valued at an estimated Rs.1000 crore. Investment bank Lincoln International is said to be advising Vadilal on the transaction.
The group is caught in the middle of a family rift where the promoters - Rajesh Gandhi, Virendra Gandhi and Devanshu Gandhi are feuding.
This exit is reportedly on account of this feud and succession issues.
The market is almost ecstatic with this development. Vadilal Industries hit a new 52-week high at Rs.840; Vadilal Enterprises has been hitting new highs consistently and on 20th it hit a new high at Rs.1448 and today, it opened and stays 3% higher at Rs.1332.95.