Jyothy Labs forays into capital market

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Kochi, Nov 24: Jyothy Laboratories Limited, a fast moving consumer goods company, will enter the capital market with an Initial Public Offering of 4,430,260 equity shares of Rs five each through an offer for sale by the selling shareholders for cash at a price decided through a 100 per cent book-building process.

Addressing newspersons here today, Company Chairman and Managing Director M P Ramachandran said the price band had been fixed between Rs 620 and Rs 690 per equity share.

The offer would include 30.52 per cent of the fully diluted post-offer paid-up capital of the company.

The selling shareholders include Canzone Limited, ICICI Bank, Canada, ICICI Bank UK PLC, South Asia Regional Fund and CDC Investment Holdings Limited.

''Of the total equity float, not more than 50 per cent of the offer will be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs), out of which five per cent will be available for allocation on a proportionate basis to Mutual Funds,'' Mr Ramachandran said.

When asked on the IPO response, representative of Enam Securities Private Limited, one of the Book Running Lead Managers, said ''to date the response was excellent and more applications are expected in the last two days.'' On the immediate expansion plan, Mr Ramachandran said a plant had been opened in Himachal Pradesh to produce the new product 'Stiff and Shine', which would be launched across the country next month.

He said the company with a networth of more than Rs 295 crore, had 72.7 per cent all-India market share and enjoyed almost 98 per cent share of the Kerala market for its premium brand 'Ujala'.

The IPO, opened on November 22, would close on November 27.

The equity shares were proposed to be listed in National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

The company had branded products in fabric care, household insecticide, surface cleaning and personal care.


UNI

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