HUL shares end marginally higher after board gives nod for new unit

Shares of Hindustan Unilever (HUL) on Tuesday ended marginally higher after the company said its board has approved setting up a new manufacturing subsidiary.

According to sources, HUL is incorporating the subsidiary to get benefit of the new corporate tax rate, which has been reduced to 15 per cent from the previous 25 per cent for new manufacturing companies.

On the BSE, the stock gained 2.84 per cent to reach intra-day high of Rs 2,279. It settled at Rs 2,232.40, up 0.74 per cent.

On the NSE, the scrip gained as much as 2.91 per cent to Rs 2,279.70. It closed 0.72 per cent higher at Rs 2,231.20.

In terms of volume, more than 22 lakh shares were traded on the NSE, while 68,000 units were exchanged on the BSE.

The FMCG major on Monday announced its plans to set up a new subsidiary, which would be primarily engaged in manufacturing activities.

The company's board has given a go-ahead to a proposal to set up a step down unit, Hindustan Unilever said in a statement.