Hindustan Unilever Shares Rise After CCI Approves Acquisition of Uprising Science
Shares of Hindustan Unilever Ltd (HUL) gained as much as 1.23% on the National Stock Exchange (NSE), hitting an intraday high of ₹2,198, after the Competition Commission of India (CCI) approved its acquisition of Uprising Science. On the BSE, the stock advanced 1.24%, reflecting positive investor sentiment following the regulatory nod.
CCI Approval for Uprising Science Acquisition
Jaipur-based Uprising Science, the parent company of Minimalist, specializes in beauty, personal care, baby care, and hair care products.
- The CCI approval allows HUL to acquire 90.5% of Uprising Science, with an agreement to purchase the remaining 9.5% stake within two years.
- The acquisition aligns with HUL’s strategy to expand its personal care portfolio and strengthen its position in the premium skincare segment.
HUL’s Growing Brand Portfolio
Hindustan Unilever, India’s largest FMCG company, owns over 50 brands, including Lakme, Lux, Knorr, Kwality Wall’s, and Surf Excel.
- With this acquisition, HUL aims to leverage Minimalist’s strong consumer base and expand its premium product offerings.
- The company’s presence in the fast-growing beauty and personal care sector will be further strengthened by this deal.
Financial Details of the Acquisition
In January 2025, HUL signed and executed a share purchase and subscription agreement to acquire a 90.5% stake in Uprising Science.
- The deal involves a secondary buyout for a cash consideration of ₹2,670 crore.
- The pre-money enterprise valuation of Uprising Science was set at ₹2,955 crore.
- HUL will also make a primary infusion of ₹45 crore to support the company’s future growth.
Strong Q3 Performance Boosts Confidence
For the quarter ended December 2024, HUL reported a net profit of ₹3,001 crore, marking a 19% increase from ₹2,519 crore in the same quarter last year.
- Revenue from operations increased 2% to ₹15,195 crore, up from ₹14,928 crore in the year-ago period.
- The company’s steady revenue growth and strong profitability continue to attract investor interest.
Stock Performance and Market Trend
At 9:46 AM, HUL shares traded 0.87% higher at ₹2,193.15, reflecting investor confidence following the acquisition approval.
- The stock movement was in line with the broader market, as the NIFTY50 index was up 0.72% at the same time.
- Despite a 0.22% decline on Monday, HUL’s long-term growth outlook remains strong, driven by strategic acquisitions and robust financials.
This acquisition marks a significant expansion for HUL in the beauty and personal care sector, reinforcing its leadership in the Indian FMCG market.