Investors have cheered the move by Emami promoters to divest their shareholding in the company to reduce debt and keep share pledging in check. Following the move, shares of Emami gained nearly 13 per cent on Tuesday to close at Rs 407.5.
On Monday, the promoters – the Agarwal and Goenka families – of the consumer goods company announced that they have sold 10 per cent stake in Emami for Rs 1,600 crore. The move was to pare the debt of other group companies such as Emami Cement and Emami Power. While the move resulted in a drop in promoter holding in the Kolkata-based company from 72.74 per cent to 62.74 per cent, it would also help in bringing promoter shares pledged with lenders.
The share sale took place on the stock exchange platform and SBI Mutual Fund, Premji Invest, Amundi, IDFC and L&T Mutual Fund were among the buyers, the company added.
The move gains significance in the light of the recent developments in companies belonging to the Essel Group and Anil Ambani-led Reliance Group. The promoters in the two groups had availed loan by pledging shares of listed companies.