Temasek to pick up a 4.9 % stake in Godrej Consumer Products for Rs685 crore
23 January 2012
In one of the biggest investments in the Indian fast most moving FMCG industry, Singapore's sovereign wealth fund Temasek is to pick up a 4.9 percent stake in India's Godrej Consumer Products Ltd (GCPL) for Rs 685 crore.
The deal would help Godrej Consumer finance its aggressive inorganic strategy, wherein it has acquired seven companies across the world since 2010 and consolidated its holding in two joint ventures.
Temasek would invest through a preferential allotment, making it the largest institutional shareholder in Godrej Consumer, the flagship of the $3.4-billion Godrej group.
Temasek is picking up the stake through Baytree Investments (Mauritius) Pte Ltd, an indirect subsidiary, through a fresh issue of Rs410 a share.
Temasek has earlier invested in firms like ICICI Bank, Tata Sky, Bharti Airtel and its tower arm Bharti Infratel.
This is a more than 2- per cent premium to the last traded share price of Godrej Consumer on Friday.