Jyothy looks to raise Rs675-Rs900 crore from PE firms: report
01 Jun 2011
Mumbai-based consumer goods company Jyothy Laboratories is close to raising about $150-$200 million (Rs675 crore-Rs900 crore) from private equity funds, Reuters today reported citing three sources.
The maker of Ujala fabric whitener is in talks with private-equity funds including the Carlyle Group, Actis, TPG Capital and Apax Partners to pick up a minority stake. The deal is likely to be announced within the next two months said Reuters.
The deal, if finalised, could be one of the biggest PE deals in India's household consumer goods segment
Although Jyothy has sought an all-time high stock price of Rs330 per share from the private equity funds, analysts say the deal would likely go through at around Rs300 per share. Though Apax Partners made the first approach for a potential deal in January this year it has been challenged by its global peers who have made attractive offers.
The funds may be used for the next phase of growth as also to bring about a turn around of the troubled operations at Henkel, which it acquired this May. At that time a top Jyothy executive said, "Several financial institutions have approached us to fund our requirements but there is nothing concrete at this stage."
Jyothy is also looking to retire the Rs600 crore loan it raised from Kotak Mahindra Bank to clinch the Henkel India buyout.
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