P&G to infuse Rs. 1,500 cr in unlisted Indian arm
FMCG major Procter & Gamble (P&G) plans to infuse more than Rs. 1,500 crore over a period of time in its unlisted Indian arm P&G Home Products Ltd to ramp up operations in the country.business Updated: Oct 22, 2012 00:33 IST
FMCG major Procter & Gamble (P&G) plans to infuse more than Rs. 1,500 crore over a period of time in its unlisted Indian arm P&G Home Products Ltd to ramp up operations in the country.
In order to execute the transaction, the authorised share capital of P&G Home Products Ltd (PGHP) has been increased from Rs. 30 crore (three crore equity shares of Rs. 10 each) to Rs. 50 crore (five crore shares of Rs. 10 each).
"The company (PGHP) is now entitled to issue up to maximum of Rs. 2 crore equity shares of Rs. 10 each at a premium of Rs. 760 per share to the parent entity namely P&G Overseas India BV," said a P&G spokesperson.
Although the spokesperson reiterated that the increase in authorised capital only allowed the possibility of infusion which will be spread over the medium to long term, based on business requirement, the value of the transaction will come to over Rs. 1,540 crore.
"The increase in authorised capital in Procter & Gamble Home Products Ltd is in line with P&G's long-term focus on India as a key developing market, and one that the parent company continues to invest behind," she said.
The fund will be used to support ongoing business activity, capital expansions for P&G operations and meet working capital needs in India, she added.