Jyothy Laborataries is in talks with private equity firms to raise close to Rs 100-150 crore for its laundry business in its 75% subsidiary, Jyothy Fabricare Services (JFSL).
Jyothy Laborataries CMD MP Ramachandran told FE, ?We are in talks with private equity firms to raise close to Rs 100-150 crore for the laundry business (JFSL) and they are on the point of converging. The money is going to be raised through the issue of equity,? said Ramachandran. However, he said it was not possible to divulge the details related to equity dilution.
The shares of the company closed at Rs 271, down 1.08%, on Monday on the Bombay Stock Exchange.
JFSL, which began its operations in Bangalore, made an initial investment of Rs 40 crore. The company caters to retail and institutional customers like airlines and hotels, besides providing door-to-door services. It will operate under Fabricare and Snoways brands.
JFSL’s bouquet of services include JFSL Corporate, JFSL rentals, Fabric Spa, Fabric Spa Busy-Easy and Snoways. It set up a facility equipped with world-class machinery and equipment, most-updated technology, supported by robust IT structure and housed in an area of 70,000 square feet, built on two acres of land at Doddaballapur, near Bangalore.