Emami promoters sell 10% stake for Rs 1,600 cr to SBI MF, L&T MF, PremjiInvest, others

Kolkata: The Emami Group on Monday said its promoters have sold 10 percent stake in the flagship firm Emami Ltd for around Rs 1,600 crore.

The transaction was executed on stock exchanges and the purchasers include SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and others, the group said in a statement.

The stake sale proceeds will be used to pare promoter debt, which was used in the creation of assets like cement and solar power, among others, it added.

Emami promoters sell 10% stake for Rs 1,600 cr to SBI MF, L&T MF, PremjiInvest, others

Representational image. Reuters.

"The promoter debt is to the tune of about Rs 4,000 crore in the group's unlisted companies. The sale will ease the liquidity position and also reduce promoter pledge of Emami shares from nearly 48 percent now," Emami Director Mohan Goenka said.

Reduction of promoter pledge could be between 4 and 5 percent.

Following the stake sale, the promoter holding in Emami Ltd will come down to 62.74 percent from around 72.5 percent, company officials said.

"SBI MF bought about 5 percent stake, while PremjiInvest purchased 3 percent," 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.

Emami Group Director Aditya Agarwal said the promoters remained steadfast in working towards the best interests of all stakeholders of the group.

Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.

Updated Date: Feb 19, 2019 12:08:33 IST