Godrej Consumer Products Ltd (GCPL) on Tuesday announced its plan to raise INR 5,000 crore from the market by issuing Non-Convertible Debentures (NCDs).
According to a board meeting update, the FMCG division of the Godrej group, which is scheduled to approve its financial results for the March quarter on May 10, will also assess a fundraising proposal.
“… at the same meeting, the board may also inter alia, consider approval of raising of funds by way of issuance of Non-Convertible Debentures (NCDs) aggregating to an amount up to INR 5,000 crore in one or more tranches,” said GCPL in a regulatory filing.
GCPL, which owns well-known brands like Good Knight and HIT, stated that the amount will be raised in one or more tranches.
Last week, GCPL made public its acquisition of the FMCG business of Raymond, which includes the brands Park Avenue, Kamasutra, and Premium, for a sum of INR 2,825 crore. The business is owned by the Singhania family.
Godrej Consumer Products Ltd (GCPL) reported a revenue of INR 6,951.56 for the fiscal year that ended on March 31, 2022.
When the acquisition was announced, Sudhir Sitapati, the Managing Director and CEO of GCPL, stated that it would expand the company’s reach in the chemist channels and increase its addressable market in the fast-growing area.
The recent acquisition of the FMCG business of Raymond is the 14th for the Godrej group firm, as part of its expansion strategy. Its last major acquisition was Strength of Nature LLC in 2016.
