homebusiness NewsNo further dilution from Emami promoters; stake sale reduces debt to Rs 2,200 crore
No further dilution from Emami promoters; stake sale reduces debt to Rs 2,200 crore
The promoters in Emami Ltd have sold 10 per cent of their stake to reduce the debts of other group companies like Emami Cement, Emami Power and others.
The promoters in Emami Ltd have sold 10 per cent of their stake to reduce the debts of other group companies like Emami Cement, Emami Power and others. The sale effectively brings down the promoters’ holding in Emami Ltd from 72.74 per cent to 62.74 per cent. The sale was executed in the stock exchanges on Monday and the stakes were sold to SBI Mutual Fund, Premji Invest, Amundi, IDFC, L&T Mutual Fund and others.
Speaking to CNBC-TV18, Mohan Goenka, Executive Director of Emami Group, shared his views on the stake sale. "Our promoters have sold about 10 percent stake. The sale is primarily to reduce our debt. This would go entirely into reducing the debt. The buyers have been some of the marquee domestic and foreign institutional investors," he stated.
"This is absolutely the last tranche. After this we would be in a very safe position. I do not think we would need to dilute any further stake in Emami Limited. The total promoter debt is almost Rs 3,300 crore. After this stake sale, we would further reduce it down to about Rs 2,200 crore. Our idea is to further reduce the debt in the coming months. We want to absolutely reduce it to negligible levels," Goenka added.
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