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Last Updated : Jun 24, 2019 05:11 PM IST | Source: Moneycontrol.com

Emami Group promoters divest 10% stake for about Rs 1,230 crore in flagship company

The company intends to pare the debt of the Emami Group in six to eight months.

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The promoters of Emami Group have sold 10 percent of their stake in flagship Emami Ltd to raise about Rs 1,230 crore.

According to a statement released by the company, this amount is intended to be used primarily for further reducing debt at the promoter level.

A company spokesperson told Moneycontrol that after the sale, the company expects around Rs 1,000 crore in hand, thereby reducing its debt to Rs 2,200 crore.

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The company intends to pare the debt of the Emami Group in six to eight months time. But it didn't disclose the identity of the 'marquee investors' it sold the stake to.

The total promoter stake in Emami Ltd subsequent to the stake sale, stands at a controlling majority of 52.74 percent.

The promoters intend to maintain this controlling majority stake in Emami Ltd without further diluting it.

"With a view to further reduce the debt and reap the benefits of such investments for the benefit of Emami Group, the process of identification for divestment of such assets has been initiated," the press release stated.

Commenting on the stake sale Mohan Goenka, Director, Emami Group, said: "The promoters are committed towards being proactive in addressing business and industry challenges and working in the best interests of all Emami Group stakeholders; the stake sale and asset identification activity are examples of steps towards this commitment."

Emami shares though fell 6.6 percent intraday to hit a five-year low on June 24 after a media report indicated that promoters sold stake via block deal route.
First Published on Jun 24, 2019 05:08 pm
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