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Home-grown FMCG company Emami has infused ₹50 lakh into its associate company Brillare Science by subscribing to 5 lakh compulsory convertible preference shares.
The infusion is primarily for working capital requirements, sources said.
Emami, in its regulatory filing, said it “has subscribed to 5,00,000 fully paid-up Compulsorily Convertible Preference Shares (CCPS), having a face value of ₹10 each of Brillare Science Pvt Ltd.”
Founded in 2009 and based in Ahmedabad, Brillare Science produces hair and skin care products, and sells them to professional salons. The business model is being reworked post-lockdown, said people aware of the matter.
In FY20, Brillare had posted a revenue of about ₹4.45 crore with a loss of ₹3.55 crore, Emami said in its annual report.
This is the second time Emami has invested in the firm in 2021. In January, it had infused ₹ one crore through a similar subscription of 10 lakh compulsory convertible preference shares.
In 2018, Emami had made a “strategic investment” in Brillare picking up a 26 per cent stake in it; which went up to 34.70 per cent as on FY20.
Emami stock closed at Rs 474.80, down by 1.10 per cent, at BSE on Wednesday.
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