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Last Updated : Jun 27, 2019 06:44 PM IST | Source: PTI

No further stake dilution by Emami promoters, looking to monetise group assets: Mohan Goenka

The promoters had sold 20 per cent stake in Emami Ltd in two tranches which fetched around Rs 2,830 crore and helped them reduce debt to Rs 2,200 crore at present.

 
 
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Promoters of Kolkata-based Emami Ltd will not dilute their stake further in the FMCG firm but are exploring various options to monetise the group's assets in the next six to eight months to pare debt, Emami Group Director Mohan Goenka said.

The promoters had sold 20 per cent stake in Emami Ltd in two tranches which fetched around Rs 2,830 crore and helped them reduce debt to Rs 2,200 crore at present.

The promoters are considering to monetise the group's other assets in sectors like cement, newsprint manufacturing, edible oil and biodiesel, ballpoint tip manufacturing, retail, real estate, pharmacy chain, hospitals and solar power, to further reduce debt level.

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"We are exploring all options, including strategic divestment, initial public offering or stake sale in group assets within the next 6-8 months with an effort to meet our objective of debt reduction," Goenka told PTI.

The promoters' stake in Emami Ltd has been reduced to 52.73 per cent following the stake sale.

"There will not be any further dilution of stake in Emami Limited. We are a diverse group and have many assets of value which can be monetised," he added.

Goenka said the objective of the stake dilution was to pare debt.

"After dilution, the promoter debt will stand at Rs 2,200 crore," he said, adding, "Currently, our primary objective and endeavour is to pare the promoter debt to almost zero in the 6-8 months."

Started in 1974, Emami Group is a Rs 16,000 crore business conglomerate.
First Published on Jun 27, 2019 06:40 pm
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