A store keeper arranges Emami’s products at a Big Bazaar outlet in Mumbai (Photographer: Prashanth Vishwanathan/Bloomberg)

Promoters Sell 10% Stake In Emami To Pare Debt

Promoters sold 10 percent stake in Emami Ltd. for around Rs 1,600 crore to pare debt.

After the divestment, the promoters’ stake in the maker of Boro Plus antiseptic cream will come down to 62.74 percent from 72.74 percent, according to its media statement. Buyers included SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund, PI Opportunities Fund and Pioneer Investment Fund.

SBI Mutual Fund picked up almost 4.49 percent stake, according to the bulk deal data provided on the exchange. Azim Premji-owned funds—Pioneer Investment Fund and PI Opportunities fund—that cumulatively acquired 3.72 percent stake in the Radhe Shyam Goenka-led company.

The stake sale will ease the liquidity position of the promoter group and reduce debt, said Emami Director Mohan Goenka. “We are committed to maintaining our significant majority stake in the company and do not anticipate any further dilution in the foreseeable future,” he said.

The group’s debt stands at Rs 284 crore as of December, according to Bloomberg data.

The transaction comes days after Economic Times reported that U.S. private equity firm KKR is in advanced talks to invest nearly Rs 2,000 crore in the Emami Group.

Shares of Emami have fallen by nearly 14 percent so far this year compared to a 5 percent drop in the NSE Nifty FMCG Index.