Shares of Emami Ltd jumped as much as 15 percent to hit a high of Rs 409.30 on BSE. On NSE, the scrip touched an intra-day high of Rs 413.70 per share. The climb comes after the promoters of the company sold 10 percent stake in it to raise approximately Rs 1,600 crore.
It raised the money in a block deal from a group of investors that include PremjiInvest, IDFC, SBI Mutual Fund, Amundi and L&T Mutual Fund to reduce the debt.
In a media statement on Monday, the group said that the proceeds from the stake sale at the stock exchanges would go to reduce the promoter debt that was used to fund its new businesses like cement and solar power. The promoter holding in Emani Ltd now stands at 62.74 percent after the stake sale and it was further said that they do not have any immediate plans of equity dilution.
Earlier this month, on 11 February, the shares of the Kolkata-based company had fallen as much as 11 percent to a four year low over rumors of a sale of pledge shares.
Besides FMCG, the group is into several other businesses like cement, edible oil, real estate, newsprint, retail, bio-diesel, hospitals, and art.