Anglo-Dutch consumer goods giant Unilever is planning to increase its stake in Hindustan Unilever, its Indian subsidiary, through a proposed buy-back of shares.
The board of HUL, India’s largest consumer goods company, will meet on July 29 to consider the proposal.
At present, Unilever and its group companies own a 51.42 per cent stake in the Indian operations. Except for India and Indonesia, the company owns 100 per cent in all Asian countries where it operates.
Analysts said the proposed buyback will reward shareholders and give them an attractive exit option, as the share price of HUL has been stagnating at around Rs 190 in recent times.
In the last three years, the stock price of the company has been underperforming the Sensex. Since January 2005, the stock has grown 30.06 per cent, compared with Sensex’s 131.29 per cent rise.
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