Emami Promoters Sell 10% More Stake, SBI Mutual Fund Hikes Shareholding
Emami Group promoters have sold a further 10 percent stake in Emami Ltd. with an aim to raise up to Rs 1,230 crore. The funds raised from the stake sale will be used to reduce debt at the promoter level.
The Emami stake sale occurred on the floor of the stock exchange to marquee institutional investors, the company statement said on Monday. SBI Mutual Fund was one of the investors. It increased its stake in Emami to 8.1 percent from 5.1 percent, according to filings on the BSE.
The promoters now hold 52.74 percent stake in Emami.
“The promoters of Emami Group have more-than-adequate pool of diverse assets of value. With a view to further reduce 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 Emami statement said.
The Emami Group wants to pare all of its debt in six to eight months, it said.
This is the second time in a year that promoters sold shares in Emami to lower debt. In February, they had sold 10 percent stake to raise Rs 1,600 crore. The stake then was bought by SBI Mutual Fund, PremjiInvest, Amundi , IDFC, L&T Mutual Fund, PI Opportunities and Pioneer Investment Fund.
On Monday, shares of Emami fell 7.59 percent to Rs 267.30 apiece on the BSE. The bulk deals were carried out Rs 270 a share.
(With inputs from PTI.)