Emami Group recently announced the sale of 10% of its stakes in the FMCG vertical, Emami Ltd. These shares have been sold to a group of different investors, some of whom include PremjiInvest and IDFC. Apart from them, SBI Mutual Funds and L&T Mutual Fund also invested in the same. At the current exchange rates, Emami received 224 Million USD (or 1,600 Crore INR) for this deal.
According to officials at the Kolkata headquarters, the proceeds of this sale are meant to go towards reducing promoter debt. As of now, the promoters own 62,74% in Emami Group.
“We have concluded a stake sale which will ease the liquidity position of the promoter group and reduce the debt,” said Mohan Goenka, director at Emami Ltd. “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.”
It is important to note that these shares closed at 355.05 INR a piece, on Monday on the BSE, which was down 1.61% from its previous close.
SBI mutual fund spent a total of 722 Crore INR to buy the shares. PremjiInvest, on the other hand, bought shares in Emami Ltd through Pioneer Opportunities Fund and Pioneer Investment Fund for 199.97 Crore INR and 399.98 Crore INR respectively. As a result, PremjiInvest now has shares that are worth a total of 599.95 Crore INR, which is 84 Million USD.
Recently, PremjiInvest also bought 6% of Future Group Stake, which is its biggest buy to date. It was bought for 1,700 Crore INR or 240 Million USD. PremjiInvest is the family office owned by Wipro Chairman, Azim Premji.
Emami’s revenue in 2017 was 2,890 Crore INR, and its share price as of now is 367 INR.