Promoters sell 10% stake in Emami Ltd for Rs 1,600 crore
19 Feb 2019
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Kolkata-based diversified group Emami on Monday said its promoters have sold 10 per cent stake in the flagship firm Emami Ltd for around Rs1,600 crore.
The share sale to a clutch of investors, including SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and others, was executed on stock exchanges, the group said in a statement.
The sale proceeds will be used to pare promoter debt, which was used in creation of assets like cement and solar power, among others, it added.
"The promoter debt is to the tune of about Rs4,000 crore in the group's unlisted companies. The sale will ease the liquidity position and also reduce promoter pledge of Emami shares (by 4 to 5 per cent) from nearly 48 per cent now," PTI quoted Emami director Mohan Goenka as saying.
Following the stake sale, the promoter holding in Emami Ltd will also come down to 62.74 per cent from around 72.5 per cent, company officials said.
"SBI MF bought about 5 percent stake, while PremjiInvest purchased 3 per cent," Goenka said.
"We are committed to maintaining our significant majority stake in the company and do not anticipate any further dilution of stake in the foreseeable future," he added.
Emami Group Director Aditya Agarwal said the promoters remained steadfast in working towards the best interests of all stakeholders of the group.
With presence in 11 key business verticals, including personal care products, edible oil, biodiesel, paper manufacturing, real estate, newsprint, writing instruments, cement, healthcare, pharmaceuticals, books and leisure retail, solar power etc, Emami Group has revenues of Rs16,000 crore. The group employs 25,000 people and has presence in 63 countries.
