Email
Print
ShareKolkata: The Rs 2,000-crore Emami Group has offloaded 13.5% stake through a qualified institutional placement (QIP) and raised Rs 310 crore.
Mohan Goenka, director, Emami, told DNA that after the restructuring of Zandu the firm had a debt of about Rs 450 crore. "The proceeds of the QIP will mainly be used to retire our debts. The balance Rs 140 crore will be repaid from our internal accruals in 2009-10."
Goenka said that the QIP had a strong participation from "large foreign institutional investors with a long-only bias and leading domestic mutual funds".
It may be recalled Emami had last fiscal acquired a controlling 68.9% stake in Zandu Pharmaceutical Works for around Rs 700 crore.
The group recently decided to consolidate its FMCG business into one entity. The FMCG business of Zandu is to be demerged into Emami. Further, the realty undertaking of Emami -- Emami Realty Ltd and Emami's interests in Zandu's non-core business, including real estate, will be demerged/ hived off into a separate company, Slick Properties Pvt Ltd (SPL).
SPL is being converted into a public limited company and will subsequently file an application for change of name to Emami Infrastructure Ltd.
