Emami issue subscribed 4.6 times

Beauty and healthcare products manufacturer Emami Ltd's public offering has received bids for shares 4.62 times the issue size, bidding for which began on Friday.

The investors have placed bids for 2.31 crore shares against 50 lakh shares of Rs two each on offer.

Almost all the bids are at Rs 70, the top-end of bidding spectrum, according to cumulative data available with the Bombay Stock Exchange and National Stock Exchange.

The bidding, for 100 per cent book built issue with price band of Rs 60-70 per share, would close on March 10.

The issue is primarily to comply with the Clause 40A of the listing agreement, which requires corporates to have a minimum of 10

per cent stock holding outside the promoter group. The public shareholding currently is around 3.92 per cent.

With the addition of another 8.18 per cent through the public offer, the company would have nearly 11.77 per cent public holding.

Emami proposes to invest a portion of the money raised for strategic initiatives and acquisitions, besides investing in regular capital expenditure.

The book running lead managers to the issue are Anand Rathi Securities Pvt Ltd and ICICI Securities Ltd while Datamatics Financial Software & Services Ltd is the registrar to the issue.