Godrej Consumer spurts as board approves merger of Godrej Household

The company made this announcement during trading hours today, 14 October 2010. Meanwhile, the BSE Sensex was down 15.89 points, or 0.08% at 20671.99. On BSE, 5.87 lakh shares were traded in the counter as against an average daily volume of 44,973 shares in the past one quarter. The stock hit a high of Rs. 440 and a low of Rs. 392 so far during the day. The stock had hit a record high of Rs. 479.70 on 17 September 2010 and a 52-week low of Rs. 225 on 29 January 2010. The large-cap stock had underperformed the market over the past one month till 13 October 2010, falling 2.63% compared with the Sensex's return of 7.70%. It had also underperformed the market in past one quarter, gaining 11.60% as against 15.02% rise in the Sensex. The company has an equity capital of Rs. 32.36 crore. Face value per share is Rs. 1. In a statement to BSE, the company said the merger has been effective since 1 April 2010 post the acquisition of the remaining 51% stake in Godrej Sara Lee, owned by its joint venture partner Sara Lee Corp. Following the acquisition, Godrej Consumer Products has become the largest homegrown household and personal care company in India and second largest household insecticides company in Asia, the company said. No shares will be issued post-merger, as Godrej Household Products (GHPL) is a wholly owned unit of the company, Godrej Consumer Products said. Godrej Consumer Products' consolidated net profit surged 67% to Rs. 116.39 crore on 46.5% rise in net sales to Rs. 643.09 crore in Q1 June 2010 over Q1 June 2009.