The Emami share price rose in early trade today after the Kolkata-based Emami Group's promoters sold 10 per cent stake in the flagship firm Emami Ltd for around Rs 1,600 crore to pare debt. The Emami Ltd share price rose up to 14.77% to 407.50 compared to the previous close of 355.05 on the BSE. Emami Ltd share opened 3.06% higher at 365.90 on the BSE. Emami share price has lost 25.76% during the last one year and fallen 5.64% since the beginning of this year.
The midcap stock was trading above its 50-day moving average of 408.65 and below its 200-day moving average of 460.87 levels, respectively.
Emami Group sold 10% in Emami Ltd to purchasers including SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and others.
The stake sale proceeds will be used to pare promoter debt, which was used in creation of assets like cement and solar power among others.
"Pursuant to the stake sale, the promoter holding in Emami Ltd will stand at 62.44 per cent," a statement by the group said. The conclusion of the stake sale will ease liquidity position of the promoter group and reduce the debt, Emami Ltd director Mohan 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.
FMCG firm Emami reported a 6 per cent decline in consolidated profit after tax (PAT) at Rs 138.3 crore for the third quarter ended December 2018. The company logged a PAT of Rs 147.16 crore in the year-ago period. Emami said net profit declined due to an exceptional cost of Rs 9.8 crore pertaining to voluntary retirement scheme (VRS) paid at one of its units.
Total income rose 7.09 per cent to Rs 816.43 crore as against Rs 762.31 crore a year ago, Emami said.
Edited by Aseem Thapliyal