Promoters sell 4 per cent stake in Jyothy Labs

Promoters of Jyothy Labs sold 4 per cent of the company's shares worth Rs. 260 crore in a block deal. Promoters had invested in the company during Henkel's acquisition.

The company further added that it believes to become debt-free by March 2021, as it intends to pay-off the debt against the shares by then. Thus, the entire amount will be used to pay off the debt. Post this block deal, 6 per cent of the promoters’ stake will be pledged shares. Paying off the rest with this transaction, promoters’ stake holding is expected to come down from 67.1 per cent to 63 per cent.

On the financial front, for the first quarter, the volume growth was around 5 per cent and for the second quarter, the volume growth increased to 9 per cent. Ullas Kamath, Jt. MD, Jyothy Labs, commented that the quarter by quarter growth has been improving for the company and this trend is expected to continue in the future as well. For the coming quarters, a double-digit growth is expected in its household insecticide business. By 2021, the company aims at leveraging its balance sheet for inorganic growth by making the company and its promoters debt free.

On Friday, the stock of the company closed at Rs. 173.35, down by 1.03 per cent or Rs. 1.80 per share. The 52-week high is Rs. 21 and 52-week low is Rs. 138.20.