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Emami promoters sell 10% stake to cut debt, stock closes 7.59% lower

After 10% percent stake sale today, total promoter stake in Emami Limited stands at 52.74%. Promoters do not intend to dilute more stake in the FMCG firm, Emami group said. 

twitter-logo BusinessToday.In        Last Updated: June 24, 2019  | 17:47 IST
Emami promoters sell 10% stake to cut debt, stock closes 7.59% lower

Emami Group promoters raised Rs 1,230 crore by paring their stakes in Emami Ltd for the second consecutive quarter today. The stake sale is intended to be used primarily for further reducing debt at the promoter level, the group said in reply to a query from BusinessToday.In.

The stake sale occurred on the floor of the stock exchange to marquee institutional investors.  After 10% percent stake sale today, total promoter stake in Emami Limited stands at 52.74%. Promoters do not intend to dilute more stake in the FMCG firm, the group said in a statement.

In last quarter too, Emami promoters sold 10% stake for Rs 1,600 crore in Emami Ltd. Emami Group sold 10% to purchasers including SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and others.

The promoter shareholding in the FMCG firm had remained unchanged for more than nine years for the period ending December 31, 2018. For the quarter ended December 2018, stake of promoters in the firm stood at 72.74%. The stake has remained unchanged since the quarter ended March 31, 2010.

For the quarter ended December 2009, the stake of promoters in the company stood at 75.67%.

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."

"The deleveraging of debt is a priority for the promoters of Emami Group. We have always endeavored and continue to endeavor to take all such steps as may be necessary to fuel the future growth of the Emami Group," Aditya Agarwal, Director, Emami Group added.

Emami Ltd share price closed 7.59% or 21.95 points lower at Rs 267.30 level compared to the previous close of 289.25 level on BSE.

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