Conagra Brands' 51.77% stake in Agro Tech Foods was valued at Rs 1,123 crore when reporting that the US-based packaged foods firm wanted to sell a controlling stake in its Indian company.

Business

Agro Tech Foods Ltd soars 15% amidst reports of proposed stake sale

Published on February 22, 2024

Conagra Brands’ 51.77% stake in Agro Tech Foods was valued at Rs 1,123 crore when reporting that the US-based packaged foods firm wanted to sell a controlling stake in its Indian company.

Rapid Surge in Share Price

On February 22, the share price of Agro Tech Foods Ltd experienced a remarkable surge of 15% following a report by Moneycontrol regarding a potential stake sale by its US-based parent company.

The stock closed the day at Rs 1,025.65, exhibiting a substantial increase from the previous day’s close of Rs 892.10.

Proposed Stake Sale by Conagra Brands

According to sources cited by Moneycontrol, Conagra Brands, a packaged foods company based in the US, is reportedly exploring the sale of a controlling stake in its Indian business.

Conagra Brands currently holds a 51.77% stake in Agro Tech Foods, valued at approximately Rs 1,123 crore at the time of the report.

Market Response and Investor Interest

The news of the proposed stake sale triggered significant market activity, with Agro Tech Foods’ market capitalization experiencing a notable uptick.

The company’s market cap stood at about Rs 2,163 crore at the close of trading on the previous day and rose to Rs 2,499 crore by the end of the day following the announcement.

Notably, the stock remained relatively flat until 11 am but witnessed a sharp increase in value shortly after the publication of the Moneycontrol report.

Marquee Investors and Product Portfolio

Agro Tech boasts prominent investors among its shareholders, including the Rakesh Jhunjunwala family.

The company is renowned for its diverse portfolio of consumer products, encompassing ready-to-cook and ready-to-eat items, spreads, breakfast cereals, chocolate confectionery, and essential staples like edible oils. Popular brands under its umbrella include Act II popcorn, Sundrop, Popz, and Duo.

Conagra’s Majority Ownership

Conagra Brands elevated its ownership stake in Agro Tech Foods to 51.77% back in 2011, establishing itself as the primary shareholder of the Indian foods company.