The Emami Group on Monday said its promoters have sold 10 per cent 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. "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 per cent now," Emami Director Mohan Goenka told PTI.
Reduction of promoter pledge could be between 4 and 5 per cent. Following the stake sale, the promoter holding in Emami Ltd will come down to 62.74 per cent from around 72.5 per cent, company officials said.
"SBI MF bought about 5 per cent stake, while PremjiInvest purchased 3 per cent," 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.
(With inputs from agencies.)