FMCG firm Marico Ltd today said it will sell 4.56 per cent stake in the company to two foreign investors for up to Rs 500 crore to fund acquisition of the personal care business of Paras from Reckitt Benckiser.
The company, which has already received board approval to sell 3.42 per cent stake to Indivest Pte Ltd, an affiliate of Government of Singapore Investment Corporation Pte Ltd and another 1.14 per cent stake to Baring India Private Equity Fund III Listed Investments Ltd, is seeking shareholders' nod for the same.
"The objective is to fulfill a substantial part of the funding requirements to complete the proposed acquisition of Paras Personal Care business by the company," the company said a communication to shareholders.
The consideration payable for the proposed acquisition shall be funded by the company through an infusion of fresh equity and internal accruals, it added.
Marico is proposing to allot 2,94,11,764 equity shares of face value of Re 1 each at a premium of Rs 169 per equity share aggregating upto Rs 500 crore.
Last week the company's board had approved to issue 2,20,58,823 shares to Indivest Pte Ltd. The board had also approved issue of 73,52,941 shares to Baring India Private Equity Fund III Listed Investments Ltd.
In February, Marico had entered into an agreement with Reckitt Benckiser to acquire the personal care business of Paras Pharmaceuticals for an undisclosed amount.
Reckitt had acquired both pharmaceuticals and personal care business of Paras Pharmaceuticals for Rs 3,260 crore in April 2011.
Mumbai-headquartered Marico is known for brands like Parachute coconut oil, Kaya skincare service, Saffola brands of oats and wheat flour, among others.
Shares of Marico were trading at Rs 169.40 on the BSE in late afternoon trade, down 0.50 per cent from its previous close.