BIZ-EMAMI

Emami's stake dilution to gain investor's confidence: Family
    Kolkata, June 25 (PTI) The promoter's decision to pare
10 per cent stake in Emami Ltd was has been taken in order to
infuse confidence among the investors and intends to raise its
stake in future.
    "This round of 10 per cent divestment was not desired
and not planned. But this was necessitated due to sudden
sharp erosion of stock value. We decided to sell our
stake to infuse confidence among the investors," an Emami
group promoter family member told PTI on condition of
anonymity.
    "We can always raise our stake in future once the
current storm settles. We are already exploring all options
including strategic divestment, IPO or exit in group assets in
6-8 months," he said.
    The second 10 per cent dilution since February has
helped promoters to raise Rs 1,230 crore to reduce debt.
Promoters lost over Rs 350 crore compared to last round of
stake sale when the promoter family raised Rs 1,600 crore for
same 10 per cent.
    Post-dilution the promoters holding now stands at
52.73 per cent stake in Emami Ltd.
    The promoters aim to pare the entire Rs 2200 crore
debt raised pledging shares of Emami to invest in other group
investments.
    Emami had already engaged merchant bankers for
divestment in Emami Paper and AMRI Hospitals while IPO process
for Emami Cements is also under progress. The group also has
land parcels internally valued at about Rs 4500 crore.
    In AMRI hospitals Emami group holds 98 per cent,
while it holds 74.9 per cent in Emami Paper Mills.
    Emami shares rose 9.07 per cent to close at 291.50 on
BSE on Tuesday. PTI BSM KK
KK KK

(This story has not been edited by THE WEEK and is auto-generated from a PTI feed.)