Mcleod Russel continues ascent on Lever deal

DALAL STREET SPIKES

Mcleod Russel, formed after the demerger of the bulk tea division of the erstwhile Eveready Industries, continued to firm up for the second day in succession to close at Rs 67.70 an appreciation of 3.91 per cent. The stock had gained five per cent to close at Rs 65.15 on Tuesday.

The stock gathered strength following the announcement of a memorandum of understanding with Hindustan Lever to acquire 100 per cent stake in Doom Dooma Tea company. HLL's Doom Dooma has a plantation area of 3,100 hectare spread over seven tea estates.

The total annual tea production of McLeod Russel is expected to soar to 8 crore kg with the new acquisition.