Home-grown consumer goods company Jyothy Laboratories Ltd. (JLL) on Wednesday said it has raised Rs 263 crore via a preferential allotment of shares to a promoter group firm.
The company has allotted 1.5 crore equity shares of Re 1 each at a price of Rs 175.15 per equity share to Sahyadri Agencies Ltd.
Post allotment, the paid-up equity share capital of JLL has increased to Rs 18.10 crore from Rs 16.60 crore. With this the promoter holding in JLL has gone up from 63.69 per cent to 66.7 per cent, a company statement said.
“Post successful integration with Henkel India, it was the right time to invest in existing brands and also expand JLL’s portfolio. The preferential allotment of shares along with NCDs to a clutch of investors will help JLL save the yearly interest burden of about Rs 60 crore, leaving a cash balance of about Rs 250 crore. The fund will be used for the organic and inorganic growth of the company,” said JLL joint managing director Ullas Kamath.
Around June last year, JLL announced merging Henkel India with itself to consolidate its personal care products business under a single umbrella, completing the final leg of its strategic acquisition of the Indian arm of German giant Henkel.
The FMCG firm also said that last month, it raised Rs 400 crore through zero coupon non-convertible debentures (NCDs) payable after three years. The amount raised through preferential allotment has been used to repay a term loan of approximately Rs 400 crore, it said.
JLL, known for its Ujala range of fabric care products, is backed by MCap Fund Advisors, a private equity fund managed by former Baring India partner Subbu Subramaniam. MCap owns 1.7 per cent stake in JLL.
(Edited by Joby Puthuparampil Johnson)