Godrej agrees to sell 4.9% stake to Temasek for Rs 685 crore.

Godrej and TemasekMumbai: Personal care products maker Godrej Consumer Ltd had determined to sell a 4.9% stake to Baytree Investments, an arm of Singapore-based investment firm Temasek, to raise Rs 685 crore for acquisitions and reduce debts.

Baytree will pledge over 1.67 crore shares at Rs 410 a share on a privileged allotment basis, subject to the signing of a share subscription agreement and shareholders’ approval.

Chairman Adi Godrej said that “The fund will be used for further acquisitions as well as reduce debt in the company. If we had to do QIP, there would have been significant cost. Hence, we chose the preferential allotment route.”

Temasek has invested more in emerging markets comprising China, India, Brazil and Mexico, as developing nations led the global economy’s recovery from its worst slump since World War II, according to its 2011 review.

Godrej Consumer’s net income has over quadrupled in the past three years among rising consumer spending in the world’s second-most populous nation.

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