Gillette India's offer for sale (OFS) on Wednesday was fully subscribed, helping the FMCG major raise an estimated Rs 749 crore. The company jointly promoted by The Procter and Gamble Co and Poddar Group launched its OFS in order to comply with Securities Exchange Board of India's (Sebi) minimum public shareholding norms.
As per data available with the stock exchanges, the one-day OFS attracted bids for over 38.89 lakh shares, or 1.36 times, against 28.57 lakh shares on offer by the end of trading. At the indicative price of Rs 1,925.66, the stake sale would fetch Rs 748.87 crore to the promoters.
Promoters held 88.76 per cent in the company. The company's promoters offered 28,57,744 equity shares of face value of Rs 10 each, aggregating to about 8.77 per cent of the total paid up equity share capital of the FMCG firm at a price of Rs 1,650 apiece.
The floor price was at an over 15 per cent discount over the Tuesday's closing price of Rs 1,959.55 per share. An overwhelming response to the OFS pushed the company's shares prices up, over 5 per cent to Rs 2057.70 per share.
As per the official statement by the company, SK Poddar, Akshay Poddar, Shradha Agarwala, Jyotsna Poddar, Saroj Kumar Poddar, Adventz Investments and Holdings, Adventz Finance, Adventz Securities Enterprises, Planon Group, Globalware Trading & Holdings, Procter & Gamble India Holdings B V, form part of the promoter and promoter group of Gillette India.
The share-sale follows a prolonged regulatory battle between Gillette India's promoters and Sebi. In 2012, the company had proposed a three-stage plan to bring down the promoter holding to 75 per cent.