Godrej Consumer up 10% on preferential issue to Temasek

Godrej Consumer Products has rallied 10% to Rs 445 after the personal care products maker decided to sell 4.9% stake to Baytree Investments, an arm of Singapore-based investment firm Temasek, to raise Rs 685 crore for acquisitions and reduce debts.

Baytree will subscribe to over 16.7 million shares at Rs 410 a share on a preferential allotment basis, subject to the signing of a share subscription agreement and shareholders’ approval.

“The board of directors of the company decided to seek the approval of the shareholders of the company for issue and allotment of 16.70 million equity shares of Re 1 each of the company to Baytree Investments (Mauritius) Pvt Ltd, at a premium of Rs 409 per equity share for an aggregate issue size of Rs 685 crore on preferential allotment basis,” the company said in a filing to the stock exchanges.

Baytree Investments (Mauritius) is an indirect wholly-owned subsidiary of Temasek, an Asia investment company, it added.

Meanwhile, Godrej Consumer Products said it will acquire a 60% stake in Chile-based hair colour and cosmetics company Cosmetica Nacional for an undisclosed sum.

A combined around 160,000 shares have changed hands on the counter on morning deals on both the exchanges.