Globus Spirits raising $13M from Templeton-managed fund

Delhi-based liquor firm Globus Spirits Ltd is raising Rs 70.5 crore ($12.98 million) from Templeton Strategic Emerging Markets Fund IV LDC, a fund managed by Templeton Asset Management Ltd, according to a stock market disclosure.

Globus Spirits is issuing 5 million or 4.75 per cent cumulative compulsorily convertible preference shares (CCCPS) at Rs 140 a unit to Templeton Strategic Emerging Markets Fund IV. Each CCCPS is convertible into one equity share of Rs 10 face value within a period of 18 months from the date of allotment.

Globus is also appointing Templeton’s Rajesh Sehgal as an additional director of the company.

At the same time, the firm is allotting 7.6 lakh warrants at a price of Rs 140 a unit to the promoter group entity Chandbagh Investments Ltd. The convertible warrants are issued for Rs 10.6 crore.

Post equity dilution, Templeton Strategic Emerging Markets Fund will hold around 17.5 per cent stake in the company, as per VCCircle estimates.

The securities are being issued at a premium to the market price. Globus’ scrip shot up over 6 per cent and was trading at Rs 111 a share on the BSE in a weak Mumbai market on Wednesday.

Founded in 1992 by Ajay Kumar Swarup, Delhi-based Globus Spirits is into brewery and alcohols. It produces Indian liquors under the brands Nimboo, Narangi, Ghoomar and Heer Ranjha besides Indian-made foreign liquor brands such as County Club, French Castle, Hannibal Legendary and White Lace.

The firm has three plants at Behror in Rajasthan and Samalkha in Haryana with annual capacity of 120 million litres (bulk).

Templeton Strategic Emerging Markets Fund IV LDC, which invests in unlisted as well as listed companies in emerging markets, is the fourth strategic equity fund managed by the Templeton Emerging Markets Group of Templeton Asset Management Ltd, an investment management company incorporated in Singapore.

Templeton Asset Management’s emerging markets investment team is headed by the investment guru Mark Mobius who together managed assets of over $40 billion as of November 30, 2012. Templeton Asset Management is a subsidiary of the listed Franklin Resources, Inc, a global investment management organisation operating as Franklin Templeton Investments.

(Edited by Sanghamitra Mandal)

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