Marico mops up Rs 150 crore

FMCG company Marico has raised Rs 150 crore through the qualified institutional placement (QIP) route.

The company has privately placed 29 lakh shares at Rs 522 a share, making it the first domestic FMCG company to do so.

This raises Marico's equity share capital to Rs 60.9 crore, an increase of 5 per cent over the previous figure.

The company said the subscribers to the issue are from both categories "� existing investors, and new foreign institutional investors and mutual funds.

The issue opened on November 30 and closed on December 1. At Rs 522 a share, the issue listed on the National Stock Exchange at a premium to the floor price determined under the Sebi formula (Rs 518) as also to the average closing price during the previous two weeks (Rs 508).

CMD Harsh Mariwala said, "We are pleased at the response from a wide range of investors. This reflects confidence in Marico's strategies towards sustainable profitable growth in beauty and wellness." Milind Sarwate, chief financial officer, Marico, added, "The QIP equity restores the balance in Marico's financial gearing.

This will create elbow room for us to raise debt at a short notice to fund fresh acquisition opportunities that could boost our growth efforts."

Citigroup Global Markets and Kotak Investment Banking acted as the joint global coordinators and joint book-runners for the QIP.