Vadilal Industries shares hit 52-week high amid reports of Bain Capital in talks to buy ice cream maker

Vadilal Industries share price surged over 18% and touched 52-week high on Monday's trading session following news reports that US private investment firm Bain Capital is in talks to buy the Indian ice cream manufacturer and is also considering taking control of Vadilal Industries and Vadilal Enterprises. Vadilal Industries shares opened at ₹2,830 apiece on NSE, the stock touched intraday high of ₹3,294.65 and low of ₹2,712.40.

According to persons with knowledge of the situation who spoke to CNBC-TV18, Bain Capital is in talks to buy local ice cream producer Vadilal Industries. According to the reports, Bain Capital is interested in acquiring control of Vadilal Industries, Vadilal Enterprises, as well as the brand.

According to the CNBC-TV18 sources, the private equity firm is interested in combining Vadilal's businesses into a single organisation. They also stated that the company is currently valued at around ₹3,000 crore.

The Vadilal promoters have previously investigated sale negotiations. Sources confirm that Arpwood had previously offered to buy a stake in Vadilal, but a promoter conflict stalled the potential transaction.

The CNBC-TV18 news report stated that Vadilal Group, Bain Capital, and Arpwood declined to comment on the deal's progress.

Vadilal Enterprises sells and markets the ice cream produced by Vadilal Industries, which also produces frozen foods.

On the technical front, as per trendlyne data, the stock price rose 55.1% and outperformed its sector by 41.9% in the past year.

Industry analysts are quoted as saying in a CNBC-TV 18 report that "Any private equity investor will be interested in merging the two listed companies and the Vadilal brand." In December 2022, Vadilal Industries received shareholder approval to purchase the brand from the promoter business.

“The technical structure for the stock is positive as high volumes have been seen along with the price upmove. The immediate support for the stock has now shifted to Rs. 2670 and investors with long positions should definitely ride the trend,” said Ruchit Jain, Lead Research Analyst at 5paisa.