FMCG company Jyothy Laboratories Ltd (JLL) has raised Rs 263 crore via preferential allotment of shares to Sahayadri Agencies Ltd, a promoter group company. JLL has allotted 1.5 crore equity shares of Re 1 face value at a price of Rs 175.15 a share.
Post-allotment, the paid-up equity share capital of Jyothy Laboratories has increased to Rs 18.10 crore from Rs 16.60 crore. With this, the promoters’ holding has gone up to 66.7 per cent from 63.69 per cent.
Ullas Kamath, Joint Managing Director, Jyothy Laboratories, 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 utilised for the organic and inorganic growth of the company.”
In November, the company had raised Rs 400 crore through zero coupon non-convertible debentures payable after three years. The company has now raised Rs 263 crore through preferential allotment to the promoter. This amount has been used to repay the term loan of approximately Rs 400 crore.
On Wednesday, the shares of JLL closed 5.86 per cent higher at Rs 199.70 on the BSE.