The $6 billion Wadia family’s plan to shed stake in Britannia has the 150-year old Bombay Burmah up and running
The Wadia Groupis planning to sell up to 5% stake in India’s largest biscuit maker, BritanniaIndustries, through secondary block deals to raise as much as ₹4,000 crore, according to reports.
- Bombay Burmah holds 51% stake in Britannia Industries which has a market cap of ₹82,272 crore.
- Biscuits and bakery products maker, Britannia share price, zoomed over 60% since March 23— when the lockdown started.
AdvertisementBombay Burmah stocks rallied over 4% on June 5 all thanks to its parent company— The Wadia Group, which also owns Britannia Industries. The stellar rally in the stock was triggered by The
Bombay Burmah holds 51% stake in Britannia Industries, which has a market cap of ₹82,272 crore. The Wadias are likely to sell
According to reports, the Mumbai-based conglomerate is looking to take advantage of a spike in the share
However, Britannia shares fell over a percent after the report of the proposed stake sale.
Unlike many other consumption majors, Britannia posted robust Q4 earnings. The company saw a 26% jump in its consolidated net profit to ₹375 crore for the fourth quarter ended March 31.
Bombay Burmah is India's second oldest publicly-quoted company engaged in the Burmese tea and coffee business, owned by the Wadia family with a net worth of over $6 billion, according to Forbes.
Majority of stakes in Bombay Burmah — 65.93% is held by the promoters and a little over 26% is held by the non-institutional promoters. Mutual funds, foreign institutional investors and retail investors own nearly 8% of the stake in the company.
Bombay Burmah profit for the third quarter ended Dec 31 jumped to ₹27.69 crore from the net loss of ₹11.64 crore in the corresponding quarter previous year. The reports for the fourth quarter ended Mar 31 are still awaited.
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