Havells rises on brand rights transfer
Reuters Market Eye - Shares in Havells India Ltd (HVEL.NS) gain 4.3 percent as analysts lauded the transfer of the brand name 'Havells' from one of its promoters to the company at no cost.
Havells shares on the BSE exchange (HVEL.BO) rose 4.15 percent after earlier hitting a record high of 683.90 rupees.
Havells India said on Monday its promoter QRG Enterprises would transfer its ownership of the trademark Havells, effective from April 2016.
Citigroup says the transfer would save Havells royalty payments of up to 400 million rupees a year that the company could use to pay out dividends.
Citi adds the move also is "a major positive" in terms of corporate governance as it benefits minority shareholders.
Havells shares gained 1.94 percent over the previous two sessions on the Sensex.
(Reporting by Manoj Dharra)
- Tweet this
- Share this
- Digg this
- UPDATE 3-Pizza chain Sbarro files for bankruptcy protection
- Rupee hits 7-month high as custodian banks sell dollars
- U.S. top court declines to hear 'I (heart sign) boobies' case
- Ten countries scour sea for Malaysia jet lost in "unprecedented mystery"
- UPDATE 3-China steel futures hit record lows, spot iron plunges
The BSE Sensex ended up slightly on Monday after rising to a record high for a third consecutive session as strong foreign buying continued to boost domestic-focused shares such as those of HDFC Bank, but momentum waned as exporters slumped on a stronger currency. Full Article