Having lost race, is Emami going for Amrutanjan?

Shares of personal care products maker Emami and Amrutanjan Healthcare zoomed on Monday amid reports that the former is looking at a takeover of the balm-maker.

Shares of personal care products maker Emami and Amrutanjan Healthcare zoomed on Monday amid reports that the former is looking at a takeover of the balm-maker.

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Emami’s attempt to acquire Paras Pharma had earlier fallen through. Emami shot up 16.7% on BSE to end the day at Rs 418.3, while Amrutanjan rose 20% to finish at Rs 708.7 on BSE.

“The main fear was that Emami would overpay and raise a lot of debt and now that has dissipated, which is why the stock has reacted so positively,” said an analyst with brokerage Prabhudas Lilladher.

Emami, which own brands such as ‘Fair and Handsome' and Boroplus, has been scouting for acquisitions after it acquired Zandu Pharmaceutical Works in November 2008.