Fast-moving consumer goods (FMCG) major Marico Ltd, famous for brands such as Parachute coconut oil, Kaya skincare service, Saffola brands of oats and wheat flour, on Monday said it will sell 4.6% in the company to two foreign investors for up to Rs. 500 crore. The company will use the proceeds to fund acquisition of the personal
care business of Paras from Reckitt Benckiser.
The company, which has already received board approval to sell 3.4% stake to Indivest Pte Ltd, an affiliate of the Government of Singapore Investment Corporation Pte Ltd and another 1.1% 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 in a communication to shareholders.
The consideration payable for the proposed acquisition shall be funded via an infusion of fresh equity and internal accruals.