Emami Plans Deleveraging By Selling Land Parcels & Non-Core Assets
Promoters of Emami may look at sale of land parcels and non-core assets as part of a deleveraging plan. Promoter pledging in Emami has come down to below 55 per cent from a high of 90 per cent after the sale of the cement business. According to the shareholding pattern filed with the stock exchanges by Emami, as on August 14, 54.26 per cent of promoter holding was pledged. Emami's borrowing against shares is around Rs 1,130 crore. Promoters expect pledged shares to come down to a 50 per cent-level shortly. The target is to bring it down further by March. In a post-earnings analyst call, Mohan Goenka, director, Emami Group, said in response to the reduction of pledging and borrowings, "We would try to get rid of this by end of March once the deal concludes for any of our lands or other assets. Then you would see the pledge coming down." Last month, the Emami Group completed divestment of its 100 per cent stake in Emami Cement to Nuvoco Corporation for an enterprise value of Rs 5,500 crore. Now, with most of the deleveraging concerns behind, analysts expect promoters to focus on the core business.
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