NEW DELHI: Shares of Colgate-Palmolive (India) came under pressure on Friday as global asset management firm CLSA said the entry of Colgate-Palmolive Asia Pacific into the Indian market will not augur well for the Indian subsidiary.
CLSA expressed concerns that Colgate-Palmolive Asia Pacifics foray into the Indian market by acquiring a stake in Bombay Shaving Company will hit prospects of the shareholders in future.
Colgate-Palmolive Asia Pacific, a subsidiary of the global consumer behemoth, made its debut in the Indian consumer brand space with an investment in mens grooming firm Bombay Shaving Company.
The primary investment is pegged at about Rs 18 crore ($2.6 million), with the Hong Kong arm of the global consumer company leading the round and picking up a 14 per cent minority stake in Bombay Shaving Company, ET reported.The report quoted documents filed with the Registrar of Companies and accessed from data research platform Tofler.
Stock of Colgate-Palmolive (India) was at Rs 1,175.85, down by 1.22 per cent, around 11 am.
Benchmark NSE Nifty slipped 0.09 per cent to 11,572 while the BSE Sensex was 0.06 per cent down at 38,315.