HUL's gains post open offer, pulls up other MNC FMCG stocks

The stock of fast moving consumer goods ( FMCG) major HUL closed at Rs 609.15, 1.4% higher, a day after the closure of the company’s open offer at Rs 600.

Through the open offer, Unilever, the company's overseas parent, has managed to increase its stake from 52.5% to over 67% now.

The gains made by the MNC FMCG stock had a rub-off effect on other MNC stocks of the sector.

Stocks of Colgate Palmolive appreciated 2.3% to Rs 1385.95, Procter & Gamble Health & Hygiene gained 1.6% to Rs 2982, Nestle India closed 0.5% higher at Rs 5146.2 and Glaxosmithkline Consumer Healthcare rose 0.35% to Rs 5571.

A similar thing occurred the day after the open offer of Glaxosmithkline Consumer Healthcare closed on January 30 this year.

Speculations about other MNCs consumer goods companies also adopting a similar move to increase the shareholding of their overseas parent is attracting buying interest in stocks like Colgate Palmolive, Nestle India, P&G Health & Hygiene and Gillette India.

These companies have a relatively lower promoter shareholding of 51%, 62.76%, 68.7% and 41% respectively. Besides, there is always an additional de-listing premium that gets built into MNCs stocks in anticipation of an open offer announcement from such companies.