Jyothy Laboratories shares surge nearly 7 pct on fund raising

Dec 04 2013, 21:55 IST
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At the NSE, shares of Jyothy Laboratories soared 6.88 per cent to close at Rs 202. Reuters At the NSE, shares of Jyothy Laboratories soared 6.88 per cent to close at Rs 202. Reuters
SummaryJyothy Laboratories' shares ended the day at Rs 199.70, up 5.86 per cent on the BSE.

Shares of Jyothy Laboratories today rose by nearly 7 per cent after company raised around Rs 263 crore by issuing shares to Sahyadri Agencies on preferential basis.

The FMCG company's stock ended the day at Rs 199.70, up 5.86 per cent on the BSE. In intra-day, the scrip jumped 10.25 per cent to Rs 208.

At the NSE, shares of Jyothy Laboratories shares soared 6.88 per cent to close at Rs 202.

In a filing to the BSE yesterday, Jyothy Lab said: "The preferential allotment committee of the board of directors of the company at its meeting held on December 3, has allotted 1,50,00,000 equity shares of the company of Re 1 each to Sahyadri Agencies...

"...on preferential basis at the issue price of Rs 175.15 per share against receipt of entire amount payable by Sahyadri Agencies in cash aggregating to Rs 262.72 crore."

Jyothy Labs raises Rs 263 crore via preferential allotment

Home-grown consumer goods company Jyothy Laboratories Ltd (JLL) today said it has raised Rs 263 crore via preferential allotment of shares to a promoter Group firm.

The city-based company has allotted 1.5 crore equity shares of Re 1 each at a price of Rs 175.15 per equity share to Sahayadri Agencies Ltd.

Post allotment, the paid up equity share capital of Jyothy Labs 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 release said here.

"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 to save the yearly interest burden of about Rs 60 crore, leaving a cash balance of about Rs 250 crore, Jyothy Labs Joint Managing Director Ullas Kamath said.

"The fund will be utilised for the organic and inorganic growth of the company," he said.

The FMCG firm last month 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 the term loan of approximately Rs 400 crore, the release said.

The news of preferential allotment boosted Jyothy Labs shares. The stock ended the day at Rs 199.70, up 5.86 per cent on the BSE. In intra-day, the scrip jumped 10.25 per cent to Rs 208.

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