As the promoters sell a particular stake, Dabur India’s value declines

Dabur India promoters, the Burman family, are selling off their stake worth Rs 800 crore. 

One of the few FMCG stocks that underperformed in 2022 was Dabur. Compared to the Nifty 50, which has increased by around 6%, the stock has only a 1.5% net gain to date.

Impact on the market

The share price of FMCG, Dabur India opened at low rates on December 20,  after five bunches of 16.5 million shares, or 0.9 per cent equity, changed hands.

The stock was trading at Rs. 571.05 per share on the National Stock Exchange at 9:30 am, down 3% from the previous day. Trading volume was 3.99 million shares at the time, exceeding the 20-day average volume of 2.68 million shares.

Despite a 14 per cent increase in the last six months, the stock is down more than 1.5 per cent for 2022.

About the company 

The 26 shareholders who make up Dabur India’s promoter group owned 67.24 per cent of the firm as of September 30, 2022.

The general public owns the remaining 32.76 per cent of the shares. 

Reasons for such Decision

Dabur India reported a net profit of Rs. 490.86 crores for the third quarter of 2018, which was 2.85% less than the previous year’s.

This decision comes as the result of the continuous fall in profits over the last few years.

Broker

Goldman Sachs is the deal broker for selling the Burman family’s stake, the promoters and owners of FMGC, Dabur India.