Heritage Foods gains after acquiring dairy business of Reliance Retail

Heritage Foods rose 1.71% to Rs 1,092.20 at 11:25 IST on BSE after the company said it has completed acquisition of dairy business of Reliance Retail.

The announcement was made after market hours yesterday, 12 April 2017.

Meanwhile, the S&P BSE Sensex was down 51.52 points or 0.17% at 29,591.96. The S&P BSE Small-Cap was up 86.88 points or 0.58% at 14,939.15.

On the BSE, 834 shares were traded on the counter so far as against the average daily volumes of 5,305 shares in the past one quarter. The stock had hit a high of Rs 1,103.95 and a low of Rs 1,089.20 so far during the day. The stock had hit a record high of Rs 1,173.85 on 13 February 2017. The stock had hit a 52-week low of Rs 496.50 on 29 April 2016.

The stock had underperformed the market over the past one month till 12 April 2017, falling 0.91% compared with 0.68% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 22.1% as against Sensex's 8.79% rise.

The small-cap company has equity capital of Rs 23.20 crore. Face value per share is Rs 10.

Heritage Foods said that the company has received approval from Competition Commission of India and completed the process of acquisition of dairy business of Reliance Retail. The company is taking control of entire dairy business of Reliance Retail with effect from 12 April 2017, Heritage Foods said. Post the transaction closure, Reliance Retail will continue to trade in dairy products including Heritage dairy products through its retail and wholesale channels, it added.

Heritage Foods' consolidated net profit rose 75.11% to Rs 19.91 crore on 14.43% growth in total income to Rs 667.97 crore in Q3 December 2016 over Q3 December 2015.

Heritage Foods operates in dairy, retail, agri, bakery and renewable energy segments.

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