The EmamiNSE -2.67 % Group is in exploratory talks with investors such as UltraTech CementNSE 0.93 % and private equity funds including KKR and Temasek Holdings to sell stakes in the cement business, valuing it at Rs 5,000-5,500 crore, said people aware of the matter. The Kolkata-based group is trying to reduce debt and focus on its core consumer business.
The Emami management hasn’t yet decided on whether it should exit fully or partially or undertake asset-level disposals of mines and ..
The cement business recently received regulatory clearance for an initial public offer (IPO). It’s looking to raise about Rs 1,000 crore through the proposed IPO, which included new shares worth Rs 500 crore, and the rest as an offer for sale from existing promoters.
Earlier in the week, the promoters of the diversified Emami Group — with interests in fastmoving consumer goods (FMCG), paper, real estate and cement — sold an additional 10 per cent stake to raise Rs 1,230 crore and pare debt. In February, the promoters offloaded the first tranche of 10 per cent for Rs 1,600 crore. With the latest sale, the promoters' stake in Emami has dropped to 52.73 per cent, having divested 45.4 million shares in total.
Company executives told ET that the stake sa ..
“Currently, our primary objective and endeavour is to pare the promoter debt to almost zero in six-eight months. There will not be any further dilution of stake in Emami Ltd,” said Mohan Goenka, director, Emami Group. “We are a diverse group and have many assets of value which can be monetised. We are exploring all options, including strategic divestment, initial public offering or stake sale in group assets within the next six-eight months with an effort to meet our objective of debt reduction. ..
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