Godrej Consumer 1:7 rights at Rs 123/shr

FMCG major Godrej Consumer Products today fixed the rights issue price at Rs 123 per share to raise Rs 400 crore.

The board of directors approved a rights issue in the ratio of 1:7 i.e one equity share of Re 1 each for every seven shares held.

According to a release issued by the company to the BSE today, March 19 has been fixed as the record date for the purpose of the rights issue.

According to the draft letter of offer filed with Sebi, the company plans to utilise the proceeds for funding capital expenditure, repayment of debt, investing in a subsidiary, Godrej Netherlands BV, and its joint venture Godrej SCA Hygiene.

The company is also planning to finance acquisitions and strategic initiatives through funds raised from the rights issue.