Emami shares plunge over 6%; market cap dips Rs 1,489.85 cr

Shares of FMCG player Emami today plunged over 6 per cent after the company announced acquisition of ayurvedic hair and scalp care brand Kesh King for Rs 1,651 crore.
The stock dipped 5.8 per cent to settle at Rs 1,066.15 on the BSE. In intra-day, it tanked 7.75 per cent to Rs 1,044.
At the NSE, it fell sharply by 6.24 per cent to close at Rs 1,063.65.
Following the dip in the stock, the company's market capitalisation fell by Rs 1,489.85 crore to Rs 24,198.15 crore.
Emami today announced acquisition of ayurvedic hair and scalp care brand Kesh King for Rs 1,651 crore in its foray into the fast-growing haircare segment.

"The acquisition marks Emami's foray into the ayurvedic hair and scalp care segment, which is growing at a rapid pace," Emami said in a statement.
It further said: "The transaction envisages transfer of the business as a growing concern on a slump sale basis and will include brand portfolio of ayurvedic medicinal oil, herbal shampoo and conditioner and ayurvedic capsules, along with its respective formulations and all related assets, rights and liabilities, including working capital for a total consideration of Rs 1,651 crore."
Emami has been acquiring brands domestically and internationally to wade into new product categories.