Kwality Wall's India Parent Magnum Floats Open Offer For Rs 1,303 Crore - Check Details

Kwality Wall's (India) Ltd. promoter The Magnum Ice Cream Co. will float an open offer to buy up to 26% equity from public shareholders to meet regulatory norms. The open offer is being made for 61 crore equity shares at Rs 21.33 apiece, taking the aggregate amount to Rs 1,303 crore, according to a stock exchange filing on Monday. The details regarding the open offer period will be issued at a later date. Hindustan Unilever Ltd. sold its 61.9% stake in Kwality Wall's India to Magnum for Rs 2,997 crore last year. Since Magnum's ownership is in excess of 25% of the voting share capital, accompanied with control over the company, the open offer is mandatory as per SEBI rules. If the open offer is fully accepted, the Magnum's total shareholding in Kwality Wall's India could go up to 87.9%. HUL demerged its ice cream business and listed it as a separate entity. Investors holding HUL shares at the close of trading on Dec. 5 were allotted one KWIL share for every share held in the FMCG giant. The ice-cream vertical accounts for about 3% of HUL's annual revenue, contributing roughly Rs 1,800 crore. Kotak Mahindra Capital Co. is the sole manager to the deal. Kwality Wall's India listed on the stock exchanges on Monday. ALSO READ: Ice Cream Major Kwality Wall's Lists At Rs 28.5 On Bourses After Demerger From HUL