Jyothy Labs To Raise Up To Rs 305 Cr Through IPO

MUMBAI: Jyothy Laboratories plans to raise up to Rs 305 crore through an initial public offer and said it is open to acquire companies in future to propel growth.

The FMCG company would issue 44.3 lakh shares in the price band of Rs 620-690. It would raise Rs 274 crore at the lower end of the band and Rs 305 crore at the higher end, its Deputy Managing Director K Ullas Kamath told reporters here.

The offer would constitute 30.52 per cent of the post issue paid up capital of the company. Post-issue the stake of the promoters would be 69.47 per cent.

"We intend to make acquisitions in the future as part of our growth strategy in India. We intend acquisitions which will strengthen our market position in our key product areas for our manufacturing capabilities," he said.

The company has drawn up Rs 40 crore capital expenditure plan for FY08. It plans to leverage the dominant Ujala brand with other branded fabric care products, utilise its wide distribution network and marketing expertise, improve efficiencies and manage costs and increase focus on supermarket and hypermarket sale, Kamath said.

The present investors, including Canzone Ltd, ICICI Bank Canada, ICICI Bank UK Plc, South Asia Regional Fund and CDC Investment Holdings, are selling their 44,30,250 equity shares through the IPO. The remaining stake is held by founder chairman M P Ramachandran and his family, Kamath said.

Jyothy Labs is engaged in the fabric care, household insecticide, surface cleaning, personal care and air care segments of the Indian market. It offers branded products including fabric whitener, mosquito repellent, dishwashing, bath and incense products.