Shares of Godrej Agrovet will be in focus on Wednesday after the company announced that it will acquire the remaining 48.06% stake in Hyderabad-based Creamline Dairy Products (CDPL) for Rs 930 crore. This decision will make Creamline, which manufactures and sells milk and dairy products under the ‘Godrej Jersey’ brand, a wholly owned subsidiary of Godrej Agrovet.
Godrej Agrovet already holds a 51.94% stake in Creamline, and the new deal involves signing a share purchase agreement to acquire the 47.38% equity stake from the original promoters of Creamline.
The object of the purchase/acquisition is to convert CDPL into a wholly owned subsidiary of the company by acquiring the remaining equity stake from the existing equity shareholders of CDPL, to consolidate the company’s position in CDPL. The transaction is expected to be completed by the end of September this year.
CDPL is a company incorporated under the provisions of the Companies Act, 1956, with its registered office in Hyderabad, Telangana.CDPL is principally engaged in milk procurement, processing, and manufacturing, and selling milk and milk products. CDPL is one of the leading private dairy companies in southern India, and its products are sold under the brand name ‘Godrej Jersey’.
For the financial year ending March 31, 2024, Creamline Dairy Products recorded a turnover of Rs 1,540 crore.
Shares of Godrej Agrovet rose 43.63% and outperformed its sector by 41.26% in the past year. Meanwhile, the stock has offered 52% returns in the last three years. According to Trendylne data, Godrej Agrovet has better one year returns than industry, sector, Nifty50 and Sensex.
