Shares of Godrej Consumer Products Ltd climbed in the early trading hours on February 20 after the fast-moving consumer goods (FMCG) company announced its plans to divest its stake in its wholly-owned subsidiary Godrej East Africa Holdings, Mauritius. 

Godrej Consumer shares hit an intraday high of Rs 1,249.40, 1.57% higher than its previous closing price on the National Stock Exchange (NSE). At 11:50 am, the stock was trading 0.79% higher at Rs 1,239.65. 

The Godrej Group FMCG company informed the exchanges on February 19 that it, along with one of its wholly owned subsidiaries, has entered into an agreement for divesting its entire stake in the wholly-owned subsidiary Godrej East Africa Holdings Limited, Mauritius, to HKG Africa Weave Ltd for $3.5 million. 

The exchange filing added that the deal is expected to be completed between the last quarter of the current fiscal year and Q1 FY 2024-25, subject to various regulatory approvals in the respective countries.

Following the completion of the transaction, Godrej East Africa Holdings, along with its step-down subsidiaries DGH Tanzania Ltd, Mauritius, Charm Industries Ltd, Kenya and Sigma Hair Industries Ltd, Tanzania, will cease to be subsidiaries of the company.