Godrej Industries has raised Rs 370.51 crore from the rights issue by allotting 1.72 crore shares through institutional placement.
“The company’s board has by a resolution dated July 27, 2012 allotted 1,72,33,407 shares to successful applicants at an issue price of Rs 215 per share, aggregating Rs 370.51 crore, under the institutional placement programme,” Godrej Industries said in a filing to the BSE.
Godrej Group Chairman, Mr Adi Godrej, had said earlier that the proceeds from the issue will go into funding expansion as well as to retire debt.
He had said the company has a debt of under Rs 500 crore as of June quarter.
The Securities and Exchange Board of India had allowed the institutional placement programme mechanism this January to help promoters divest their stake up to 75 per cent without going through the second follow-on option.
For the year ended March 31, 2012, the company had posted a net profit of Rs 292 crore against Rs 293 crore in 2010-11fiscal. Its total income in FY’12 rose to Rs 5,804 crore from Rs 4,602 crore in FY’11.
Godrej Industries is the country’s leading manufacturer of oleochemicals and produces more than 100 chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats.