The promoters of the diversified Emami Group on Monday announced the sale of 10% stake in fast-moving consumer goods (FMCG) major Emami Ltd to a clutch of investors including PremjiInvest, the family office of Wipro chairman Azim Premji, and non-banking financial company IDFC.
Emami said in a stock-exchange filing that the transaction, which was executed via bulk deals on Monday, had fetched the company Rs 1,600 crore (around $224 million at current exchange rates).
Apart from PremjiInvest and IDFC, the other buyers included SBI Mutual Fund and L&T Mutual Fund.
Kolkata-headquartered Emami said the proceeds from the stake sale would go towards reducing promoter debt. The promoters will now hold 62.74% stake in Emami Ltd.
“We have concluded a stake sale which will ease the liquidity position of the promoter group and reduce the debt,” said Mohan Goenka, director at Emami Ltd. “We are committed to maintaining our significant majority stake in the company and do not anticipate any further dilution of stake in the foreseeable future.”
Shares of Emami Ltd closed Rs 355.05 apiece on the BSE on Monday, down 1.61% from the previous close.
SBI Mutual Fund bought shares for Rs 722.78 crore while PremjiInvest purchased a 3.7% stake in Emami through its PI Opportunities Fund and Pioneer Investment Fund, shows stock-exchange data. While PI Opportunities purchased shares worth Rs 199.97 crore, Pioneer Investment acquired shares worth Rs 399.98 crore. Put together, PremjiInvest picked up shares worth Rs 599.95 crore (around $84 million).
The family office has invested in more than a half-a-dozen new firms over the past year, according to News Corp VCCircle's research arm VCCEdge.
Last June, PremjiInvest picked up a stake in Future Retail Ltd in its single-biggest investment to date, almost a decade after the Wipro chairman burnt his hands in the retail sector with now-defunct supermarket chain Subhiksha.