Emami to raise funds through QIP

FMCG major Emami today said it plans to raise funds by sale of its shares to institutional investors to fund its expansion plans and other business activities.

In its preliminary placement document for qualified institutional placement (QIP) issue, Emami did not disclose the number of shares to be sold or the amount of the fund to be raised, but the company's board had approved in May last year issuance of up to 1.09 crore shares through a QIP route at the market price.

Based on the floor price of Rs 276.67 per share mentioned in the QIP document, the company can raise a minimum of Rs 301.57 crore through sale of 1.09 crore shares. But, the actual price for the sale could be higher as the company's shares are currently trading at about Rs 365 per share.

When contacted, the company officials, however, did not disclose the total number of shares to be sold in the QIP issue.

"...The company intends to use the net proceeds received from the offering to accelerate growth, fund various expansion plans, long-term working capital requirements, to finance investment opportunities and for general corporate purposes...," Emami said in its QIP document.