Kolkata-based FMCG major has raised Rs 310 crore through the QIP route for paying

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of its debts, developing and rolling out new products and funding other expansion plans. This came on the heels of the FMCG business of Zandu Pharmaceuticals being demerged into Emami on June 19.

Disclosing this, Mohan Goenka, director, Emami, told Financial Chronicle, “The main promoters’ equity in the company will come down by 13.2 per cent following the QIP. The promoters were holding 87.84 per cent of the total paid-up equity.” Soon after the issue was oversubscribed, Goenka said that eight-nine large foreign institutional investors had bought these shares. He however, refused to divulge their names.

He said, “We are extremely pleased that large foreign institutional investors with a long-only bias and leading domestic mutual funds have appreciated our inherent strengths and reposed faith in our company. The positive response to the Issue reflects the confidence that global investors have in the company and its business model. As a result of this, they have decided to invest in the company through the QIP route in significant volumes. The other significant aspect is that it will help us increasing the shareholders’ base also.” Goenka said that the primary objective of this issue was to pay off debts and then we always look for opportunities to grow organically and inorganically and a part of the fund can also be used for that purpose.

Meanwhile, R S Agarwal, chairman, Emami, said, “The issue proceeds will be used to develop new products, retire debts and invest in secured instruments to protect all stakeholders’ interest. We feel happy that we could successfully close the QIP despite such market volatility”.