Emami promoters sell 10% stake, stock plummets

Emami Group promoters have sold 10% of their stake in FMCG company Emami to raise nearly Rs 1,230 crore to pare debt. The promoters will look for strategic sale of some of its assets to bring down the debt further.

The stake sale is intended to be used primarily for further reducing debt at the promoter level.

Mohan Goenka, director, Emami, told DNA Money that the promoters will not sell any more stake in Emami and the realisation from the current stake sale would bring down the total debt at the promoters' level of Rs 2,200 crore from Rs 3,300 crore.

"Most of the remaining debt is of long-term nature. We would like to bring down the promoters' debt to a negligible level in 6-8 months by strategically selling some of our assets," Goenka said. The process of identification for the divestment of such assets has been initiated.