Shares of Colgate Palmolive India fell three percent after global brokerage firm, CLSA, raised concern over Colgate Palmolive Asia Pacific Markets' purchase of stake in Bombay Shaving Co.
Colgate Asia Pacific's acquisition of Bombay Shaving Co raises concern over governance due to overlap in category, the brokerage firm said in a note on Friday.
The brokerage firm believes that the acquisition of stake by Colgate Palmolive India would have made sense instead of that by the Hong Kong-based subsidiary.
Shares of Colgate-Palmolive India traded lower by 1.21 percent or by Rs 14.40, at Rs 1,176 on the BSE at 12:23 PM. It has touched a low of Rs 1,157.40 in intraday trade.
Meanwhile, the BSE Sensex dipped by over 100 points or 0.27 percent, to 38,233.13.
The Nifty 50 also declined by 0.24 percent or 27 points, to 11,555.35. The Nifty FMCG traded lower by 0.47 percent.
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