According to Godrej Soaps chairman Adi Godrej, the company has tentatively decided on the above two names for companies which will deal in consumer products and chemicals, respectively. Godrej Soaps, which, as part of its restructuring plan to reduce its debt and enhance shareholder value, is selling part of its stake in Godrej Sara Lee to the public, is planning to come out with an initial public offering (IPO) in November this year.

The Godrej group - which includes Godrej Soaps, Godrej & Boyce and the stake held by Godrej Sara Lee managing director A Mahendran - offers to sell 63,84,400 equity shares of Rs 4 each. This will reduce the group's holding in Godrej Sara Lee from the current 49 per cent to 24 per cent post-offer.

Sara Lee Mauritius Holding, which is the majority share holder in Godrej Sara Lee, will continue to hold 51 per cent of the equity. The post bonus equity of the company is Rs 10.21 crore.

The offer includes a book built portion of 57,45,900 equity shares and fixed price portion of 6,38,500 equity shares. The book built portion is 90 per cent of the offer and the fixed price portion is 10 per cent of the offer.

Even after the offer, the management would rest with Sara Lee.Post issue, the board of Godrej Sara Lee would comprise three directors from the Godrej camp, three from Sara Lee and three external directors will be additionally appointed.

Godrej Sara Lee is a Rs 276 crore household insecticide major which leads in this segment with a market share of 40 per cent. The company, as part of its international expansion plans, is studying the possibility of setting up a manufacturing base in Egypt and Bangladesh.

The pricing of the issue will be decided in due course of time in consultation with Kotak Mahindra Capital Company which is the book running lead manager, the company said.

Godrej Sara Lee is the world's largest manufacturer of mosquito mats with 66 per cent market share in India. Prominent brands in its portfolio include, Good Knight, Jet, Hit and Hexit.