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| Emami raises Rs 310 crore through QIP issue |
| BS Reporter / Kolkata Jul 02, 2009, 17:45 IST |
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Kolkata-based FMCG major Emami Limited has approved the qualified institutional placement (QIP) issue of 100,00,000 equity shares of Rs 2 each at the issue price of Rs 310 per equity share, aggregating to an issue size of Rs 310 crore.
According to R S Agarwal, chairman, Emami, the proceeds from the QIP issue would be used to develop new products, pay off debt, and invest in secured instruments to protect all stakeholders interest.
The funds may also be used for general corporate purposes, temporarily invest funds in creditworthy instruments, including money market mutual funds and deposits with banks.
India Infoline Limited (IIFL) and Anand Rathi Financial Services Ltd acted as the global coordinators and book runners for the issue.
The company had launched the offering on June 30 and priced on July 2.
The move is in sync with Emami’s plans to grow through the inorganic route.
R S Agarwal had earlier said that the company was mulling the idea of acquiring businesses which are strategically important for growth of Emami.
“Some of the best institutional investors in the world have evinced interest in acquiring shares of our company,” Agarwal had said.
The merger of Emami with Zandu recently and share sale to institutional investors are expected to increase the liquidity or number of the company’s shares available for trading on the bourses. This, in turn, could result in better price discovery.
Currently, the promoters of Emami—the Kolkata-based Agarwal and Goenka families—own 88 per cent of the company’s total paid up equity, which is likely to get diluted following the QIP issue and merger of Zandu and Emami.
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