HUL has been one of the most preferred stocks in these extremely critical times. Today too the stock is right among the top five gainers. It opened over 5.5% higher at Rs.574 and went on to hit an intraday high at Rs.2059.80, going up 10%.
This is one of the most preferred stocks as consumer goods are very much in demand – to stay prepared for the lockdown, people are stocking up on everything and demand for consumer goods are spiked up more than usual. Thus this sector, the consumer goods, is probably the lone one standing while everything else is crumbling down.
This reason apart, the company stated yesterday that it has bought VWash brand and other extensions from Glenmark. Under this, the brand and other trademarks, copyrights, know-how associated with Glenmark’s VWash business will be transferred to HUL.
The consideration has been split into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years.
Glenmark will continue to manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.