Mumbai: FMCG major Godrej Consumer Products has fixed the rights issue price at Rs123 a share to raise around Rs400 crore.
The board of directors have approved a rights issue of shares in 1:7 ratio, wherein one equity share of the face value of Re1 each would be issued for every seven shares of the same face value held.
The rights issue price has been fixed at Rs123 per equity share that is face value of Re1 with a premium of Rs122 per share and 19 March has been fixed as the record date for the purpose of rights issue of equity shares, the company said in a filing to the Bombay Stock Exchange.
According to the draft letter of offer filed with market regulator Sebi, the company plans to use the proceeds of the issue for funding of capital expenditure, payment of certain debts, Investing in our subsidiary, Godrej Netherlands BV, and its Joint Venture, Godrej SCA Hygiene Ltd.
Besides, the company also intends to finance acquisitions and strategic initiatives and to meet general corporate purposes.
Earlier the board of directors of the company at its meeting on 23 November, 2007, approved the issue of further equity shares by way of rights, for up to a maximum amount of Rs400 crore.
Shares of the company were trading at Rs134, down 2.83% on BSE in the afternoon.