Jyothy Laboratories raises Rs 263 crore via preferential shares

Home-grown consumer goods company Jyothy Laboratories Ltd (JLL) said on Wednesday that it has raised Rs 263 crore via preferential allotment of shares to a promoter group firm. The city-based company 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 Laboratories 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, the company said in a statement.

"Post successful integration with Henkel India it was the right time to invest in existing brands and also expand JLL's portfolio," Jyothy Laboratories joint managing director Ullas Kamath said.

"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," he said.

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

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.

News of preferential allotment boosted Jyothy Laboratories shares. The stock ended the day at Rs 199.70 apiece on the BSE, up 5.86 per cent from the previous close.