HUL shares under pressure on royalty payment concerns

FMCG major Hindustan Unilever (HUL) traded under pressure on the bourses for the second day on Thursday, falling more than 2.5 per cent in morning trade on concerns that the company may face higher royalty payments to its parent Unilever Plc.

The scrip recovered a little in late morning trade, but continued trading in red. Shares of HUL were down 1.77 per cent on BSE at Rs 520.50 at 11.50 am. At the same time, the scrip was down 1.76 per cent on the National Stock Exchange at Rs 520.40.

Media reports say concerns about royalty payments by the Indian arm of Unilever grew after Unilever Indonesia on Wednesday agreed to pay a higher royalty payment to the parent company.

Meanwhile, the 30-share BSE Sensex was trading at 19,344.47, down 10.79 points or 0.06 per cent in late morning trade.