Emami rallies on Kesh King buy for Rs 1651 crore

NEW DELHI: Emami Ltd rallied as much as 4.7 per cent in intraday trade on BSE, after the mid-tier FMCG firm said that it acquired the ' Kesh King' brand of hair and scalp care products from SBS Biotech for Rs 1,651 crore, one of the largest deals in the segment in recent times.

The stock ended the day at Rs 1,087.15; up 1.97%.

The valuation is pegged at 5.5 times Kesh King's sales, which are equivalent to about 15% of Emami's Rs 2,030-crore turnover in the previous financial year. The transaction envisages transfer of the business as a going concern on a slump-sale basis, ET reported.

It will include the Kesh King portfolio of hair oil, shampoo and ayurvedic capsules, along with its respective formulations and all related assets, rights and liabilities, including working capital, Kolkatabased Emami said in a statement.