Beauty and healthcare products manufacturer Emami has fixed the bidding price band for its public offer of 50 lakh equity shares between Rs 60 to 70.
"The issue of 50 lakh shares of Rs 2 each at a price to be determined through the book-building process. The issue opens for bids on March 4 and closes on March 10," Mohan Goenka, director, Emami said on Wednesday.
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, he said. With the addition of another 8.18 per cent through the public offer, the company would have nearly 11.77 per cent public holding, Goenka said.
"Emami proposes to invest a portion of the money raised for strategic initiatives and acquisitions, besides invest in regular capital expenditure," he said.
Out of the 50 lakh shares, five lakh shares have been reserved for allotment to employees of the company at the same price as discovered through book-building process, he said.
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.