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Jayanta Mallick

Kolkata, June 30 Emami Ltd plans to raise around Rs 350 crore through qualified institutional placements (QIP) primarily to reduce debts in its books. A portion of the fund will also be used to finance capital expenditure for its FMCG business.

The placement, to be conducted through book running process and scheduled to open on July 2 and close on July 6, will have Anand Rathi Financial Services and India Infoline as lead managers.

The placement is open for both domestic and overseas institutions. The company recently held road shows in London, Singapore and Hong Kong for the proposed QIP.

According to sources, the company is ready to place between 10 and 15 per cent of the enhanced capital of Emami. Sources further clarify that the placement is proposed for Emami’s standalone entity. This means that the shareholders funds and borrowings of the entity, prior to proposed restructuring, would be relevant for the QIP.

Currently, Emami has some 6,21,45,177 outstanding shares. The floor price has been fixed at Rs 276.67 a share of Rs 2 each.

Emami has secured term loans worth Rs 35 crore, working capital of Rs 19.5 lakh and unsecured loan worth Rs 30 crore in its books. The total debt equity on standalone basis is 0:13. The paid-up capital is Rs 12.43 crore and the reserves is worth Rs 289 crore.

Sources further said the promoters had lent money to the company by pledging a substantial portion of their holdings. The stock closed at Rs 365 on BSE on Tuesday.

More Stories on : Private Placement | Diversified

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