The Emami Group's stocks rose sharply by over 14 per cent on Tuesday after the group promoters sold their 10 per cent stake in Emami Limited, raising about Rs 1,600 crore to reduce debts. During the afternoon session of the trade, shares of Emami traded 14.83 per cent higher at Rs 407.70 per share from its previous close of 355.05.
The Emami Group's promoters on Monday had sold their 10 per cent stake in its flagship Emami Limited, raising about Rs 1,600 crore to reduce debts. After the sale, the promoters' holding in the company stood at 62.74 per cent. The transaction was executed on the stock exchange on Monday and purchasers included SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and Pioneer Investment.
"The stake sale proceeds will reduce promoter debt, which was used in the creation of assets like cement and solar power," the company said. Commenting on the divestment, Director of Emami Limited Mohan Goenka said: "We have concluded a stake sale which will ease the liquidity position of the promoter group and reduce the debt." He also said the promoters are committed to maintaining their significant majority stake in the company and "do not anticipate any further dilution of stake in the foreseeable future".
(With inputs from agencies.)