Godrej Industries today said it has raised Rs 370.51 crore from the rights issue by allotting 1.72 crore shares through institutional placement.
"The company's board has by a resolution dated July 27, 2012 allotted 1,72,33,407 shares to successful applicants at an issue price of Rs 215 per share, aggregating to Rs 3,705.18 million, under the institutional placement programme," Godrej Industries said in a filing to the BSE.
Godrej Group chairman Adi Godrej had earlier said that the proceeds from the issue will go into funding expansion as well as to retire debt.
The company has a debt of under Rs 500 crore as of the June quarter, said Godrej.
Sebi had allowed the institutional placement programme mechanism this January to help promoters divest their stake upto 75% without going through the second follow-on option.
For the year ended March 31, 2012, the company had posted a net profit of Rs 292 crore as against Rs 293 crore in 2010-11 fiscal.
The company's total income in FY12 rose to Rs 5,804 crore from Rs 4,602 crore in FY11.
Godrej Industries is the country's leading manufacturer of oleo chemicals and produces more than 100 chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats.