Emami slips 7%, hits lowest level since August 2014 after huge block deals

Till 09:56 am, a combined 71.64 million shares, representing 15.78 per cent of the company's equity, had changed hands on the BSE and NSE.

Emami's stock price hit an over four-and-half year low of Rs 270, slipping 7 per cent on the BSE, after huge block deals. It was trading at its lowest level since August 8, 2014 on the BSE.

The stock is trading lower for the eight straight day and has fallen 25 per cent in the past month. In comparison, the benchmark S&P BSE Sensex was down 0.42 per cent during the same period.

At 09:20 am, around 34.63 million shares, representing 7.6 per cent of Emami's total equity capital, changed hands on the BSE through block deals, the exchange data shows.

Till 09:56 am, a combined 71.64 million share, or 15.78 per cent equity of the company, had changed hands on the BSE and NSE. The stock was trading 5 per cent lower at Rs 274, as compared to a 0.23 per cent decline in the benchmark index.

Although the name of the buyers and sellers were not ascertained immediately, sources said the promoters may have offloaded shares in the open market.

As of March 2019, out of 62.74 per cent promoters’ holding in Emami, 47.68 per cent stake were pledged with the lenders. According to exchange filings Emami promoters have pledged shares with Axis MF AMC, Tata Capital Financial Services, IndusInd Bank, DCB Bank, Hero Fincorp and others.

Earlier, in February, Emami said its promoters had sold 10 per cent stake in the company for Rs 1,600 crore to reduce promoter debt which was used in creation of assets like cement, solar power etc. Funds like SBI Mutual Fund, Premji Invest, Amundi, IDFC and others, were the buyers, thereby reducing the promoter holding in Emami to 62.7 per cent from 72.7 per cent as on December 31. The company had said they did not anticipate any further dilution of stake in the foreseeable future.

Emami’s stock was under pressure due to consistent weak operating performance and rising promoter share pledge. Thus far in the calendar year 2019, the stock has tanked 35 per cent, against a 9 per cent rise in the S&P BSE Sensex.