Gillette India's sale offer subscribed 14%; stock surges

Company got bids for 3.9 lakh shares. At the base price, these shares would be worth about Rs 472 cr

FMCG major Gillette India's stock surged nearly 5% in the afternoon trade today as the company launched its one-day offer-for-sale (OFS) at a floor price of Rs 1,650.

The base price is at an over 15% discount over the yesterday's closing price of Rs 1,959.55 apiece.

Gillette India got bids for 3.99 lakh shares compared to 28.57 lakh shares on offer at 1445 hrs. The OFS is already subscribed 14% at an indicative bid price of Rs 1,726.35 per share.

At the base price, these shares would be worth about Rs 471.52 crore.

The company's promoters are selling 28,57,744 equity shares of face value of Rs 10 each, aggregating to about 8.77% of the total paid up equity share capital of the FMCG firm, through the OFS route.

Gillette India was trading 4.81% higher at Rs 2,053.75 apiece on the BSE. It had hit a high of Rs 2,070 and a low of Rs 1,872 in trade today.

The OFS is part of the company's effort to comply with market regulator Sebi's minimum public shareholding norms.

Gillette India is jointly promoted by The Procter and Gamble Co and Poddar Group. Promoters hold 88.76% in Gillette.

The share-sale follows a prolonged regulatory battle between Gillette India's promoters and the Securities and Exchange Board of India (Sebi).