The promoters of Emami Group have raised nearly ₹1,230 crore by selling 10% of their stake in Emami Ltd. The money thus raised is proposed to be used primarily for further paring debt at the promoter level.
This is the second round of stake sale with the promoters offloading 10% in February to raise about ₹1,600 crore. The latest stake sale occurred on the floor of the stock exchange to marquee institutional investors.
The total promoter stake in Emami Ltd., subsequent to the stake sale, stands at 52.7%.
The promoters intended to maintain this controlling majority stake in Emami Ltd. without further diluting it, the company said in a regulatory filing.
‘No further stake sale’
In case of further fund raising, the indication is that the Emami promoters may dip into their pool of ‘diverse assets’, according to the release. The process for identification of such assets has begun, the release added.
Commenting on the stake sale and value-realisation efforts, Mohan Goenka, director, Emami Group, said:
“The promoters are committed to being proactive in addressing business and industry challenges and working in the best interests of all Emami Group stakeholders.”
The promoters debt stood at around ₹2,200 crore with the banks and ₹700 crore with debt mutual funds.
‘Zero debt’
“This will now become zero.” Aditya Agarwal, director, Emami Group, said: “The deleveraging of debt is a priority for the promoters of Emami Group. We have always endeavoured and continue to endeavour to take such steps to fuel the growth of the Group.”
Emami, which owns brands like Keshking, Navratna and Boroplus had seen flat domestic sales in 2018-19 with an extended winter impacting summer sales, which account for 40% of the turnover.
