No more stake sale by Emami Ltd promoters, says Goenka

By

Maverick Martins

Published
Jun 28, 2019

Promoters of Kolkata-based Emami Ltd has decided not to sell any further stake in the company, as they intend to continue being the majority stakeholders in the firms.

During the last six months, promoters of Emami Ltd had sold 20 percent in the company in two tranches for around Rs 2,830 crore ($410 million) to reduce debt.
 
After the sale, the promoters’ stake in the company has come down to 52.73 percent from 72.73 percent they had during the start of the year. The company is now exploring new ways to raise funds to help it reduce debt.

"We are exploring all options, including strategic divestment, initial public offering or stake sale in group assets within the next 6-8 months with an effort to meet our objective of debt reduction," Emami group director Mohan Goenka told PTI.
 
"There will not be any further dilution of stake in Emami Limited. We are a diverse group and have many assets of value which can be monetised. The objective of the stake dilution was to pare debt. After dilution, the promoter debt will stand at Rs 2,200 crore. Currently, our primary objective and endeavour is to pare the promoter debt to almost zero in the 6-8 months,” Goenka added.
 
Founded in 1974, Emami Limited is one of the leading personal and healthcare businesses in India, with a portfolio of over 300 products.