Godrej Consumer divests entire stake in premium beauty brand BBLUNT to Mamaearth parent for Rs84.5 crore; Stock rallies over 2%

15 Feb 2022 , 11:31 AM

Godrej Consumer Products stock was trading higher on Tuesday after the company divested its entire stake in Bhabani Blunt Hair Dressing Private Limited and the right to use the “BBLUNT” brand name to manufacture and sell BBUNT branded products to Honasa Consumer Private Limited, the parent company of direct to consumer brand, Mamaearth.

The divestment includes the incremental equity stake arising out of the conversion of convertible debentures.

The total consideration proposed to be received by GCPL on the closing of the transaction is Rs84.5 crore. Of the total, proceeds from the divestment of stake (including the convertible debentures) In Bhabani Blunt Hair DreSSing Private Limited Rs25.7 crore subject to closing working capital adjustments. While proceeds from the divestment of right to use the ” BBLUNT” brand name to manufacture and sell BBLUNT branded products and related assets would be Rs58.8 crore.

Honasa Consumer is the parent company of direct to consumer brand, Mamaearth. It is a personal care company and has a diverse product portfolio including face & body care, hair care, baby care and beauty.

At around 11.27 am, Godrej Consumer was trading at Rs816.70  per piece up by 2.16% on BSE. The stock was near the intraday high of Rs834,50 per piece.