Archies shares in demand on Videocon stake buy
Shares of Archies surged nearly 20% after reports that Videocon group had acquired more than 4% in the card company.
By ET Online |
MUMBAI: Shares of Archies surged nearly 20 per cent after media reports that Videocon group had acquired more than 4 per cent in the greeting cards company, and has plans to raise their stake further.
According to the report, the Venugopal Dhoot-controlled Videocon group has sent feelers to Moolchandanis, the family that owns Archies, for a possible buyout deal. But due to valuation differences, Videocon purchased the shares from the open market over the last month.
Indications are that the Dhoots will step up their purchases and make the statutory announcement to disclose their shareholding, which is necessary after it crosses 5 percent.
Despite being a relatively small corporate entity, Archies has a strong brand equity with a share of about 50 per cent in the greeting cards market. It has a strong distribution network, with about 2,000 outlets and franchisees, called Archies Galleries, spread across 120 cities and six countries. For Videocon, the brand would be the right fit for its retail plans through Planet M.
At 10:18 am, shares of Archies was up 15.83 per cent at Rs 102.10, easing from a high of Rs 105.75 in trade so far.
According to the report, the Venugopal Dhoot-controlled Videocon group has sent feelers to Moolchandanis, the family that owns Archies, for a possible buyout deal. But due to valuation differences, Videocon purchased the shares from the open market over the last month.
Indications are that the Dhoots will step up their purchases and make the statutory announcement to disclose their shareholding, which is necessary after it crosses 5 percent.
Despite being a relatively small corporate entity, Archies has a strong brand equity with a share of about 50 per cent in the greeting cards market. It has a strong distribution network, with about 2,000 outlets and franchisees, called Archies Galleries, spread across 120 cities and six countries. For Videocon, the brand would be the right fit for its retail plans through Planet M.
At 10:18 am, shares of Archies was up 15.83 per cent at Rs 102.10, easing from a high of Rs 105.75 in trade so far.
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