Godrej Consumer Products (GCPL) announced on Tuesday that it plans to raise Rs 5,000 crore from the market through the issue of Non-Convertible Debentures (NCDs), as per the company’s regulatory filing.
The Godrej group’s FMCG unit will be holding a board meeting on June 10 to review its financial results for the March quarter and to discuss the proposal for funraising.
According to GCPL, which owns well-known brands such as Good Knight and HIT, the money will be raised in one or more tranches.
The company last week announced the acquisition of Singhania-controlled Raymond’s FMCG business, including brands such as Park Avenue, Kamasutra, and Premium, for Rs 2,825 crore.
The acquisition is expected to increase the company’s addressable market in the fast-growing area and expand its reach in the chemist channels.
This is the 14th acquisition by the Godrej group firm for the expansion of its portfolio. Its last big acquisition was Strength of Nature LLC in 2016. GCPL had reported a revenue of Rs 6,951.56 crore for the financial year ended on 31 March 2022.
The move to raise funds through NCDs is seen as a means to support the company’s growth plans and expansion strategies. The FMCG sector has been witnessing a revival in demand as the economy reopens and consumer sentiments improve.
With the acquisition of Raymond’s FMCG business, GCPL aims to strengthen its presence in the personal care segment and leverage the brand’s equity to drive growth. The market response to the fundraising and acquisition plans will be closely watched by investors and analysts alike.