New Delhi, Feb 13: Hindustan Lever Chemicals has shot back into limelight on the Mumbai Stock Exchange. The scrip bounced back gaining Rs 37 or over 6.5 per cent on Friday. HLCL which rose to a high of Rs 613 on bonus expectation, saw profit-booking pulling the scrip down to Rs 582 following the announcement of 1:1 bonus and a 180 per cent dividend from the company.The renewed activity in the scrip is attributed to the rapid developments in the Hindustan Lever group following the annoucements made by the company on Thursday. HLL is reportedly keen on hiving off its speciality chemicals business as a 50:50 per cent joint venture. While Unilever had sold off its worldwide chemicals business to ICI Plc in 1997, ICI India is reportedly in the race for entering into a JV with HLL.
HLCL, in which HLL holds 60 per cent stake, is engaged in the business of bulk chemicals following the restructuring. The restructuring saw Stepan Chemicals name rechristened to HLCL with a swap of businesses between the latter andits parent. Hindustan Lever acquired the detergents business, HLCL got the bulk chemicals business in exchange.
The speculation in the HLCL counter on Friday, apart from the bonus news, is attributed to the talk of HLL hiving off its speciality chemical business. Brokers were not sure of the role HLCL will have in the emerging combination.
HLCL has posted a 19 per cent jump in sales to Rs 566 crore for the year ended December, 1997. Net profit shot up by 43 per cent to Rs 25 crore. The rise is attrbiuted to a sharp fall in interest burden from Rs 6.76 crore to Rs 3.55 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
