Emami Shares Jump 5% On Move To Pare Debt
NEW DELHI: Shares of FMCG player Emami jumped 5 per cent in early trade on Tuesday after the promoters of the company sold 10 per cent stake on Monday to pare company’s debt.
Emami Group promoters on Monday sold 10 per cent stake in the FMCG flagship Emami in a block deal to raise Rs 1,600 crore from a group of investors which includes SBI Mutual Fund, PremjiInvest, Amundi, IDFC and L&T Mutual Fund amongst others which will help reduce promoter debt, an ET report said.
The group in a media statement said the proceeds from the transaction undertaken through the stock exchange will help to reduce promoter debt which was used to fund newer businesses like cement and solar power. Post the stake sale, promoter holding in Emami LtdNSE 2.62 % will stand at 62.74 per cent and the promoters have no immediate plan of further equity dilution.
Emami Group director Aditya Agarwal said the promoters are confident about the growth prospect of the group and remain steadfast in working towards the best interests of all stakeholders.
Shares of the company traded 4.18 per cent up at Rs 369.90 around 9:50 am.