Emami group is selling its entire cement business to a subsidiary of Nirma - Nuvoco Vistas Corporation for an enterprise value of Rs.5500 crore.
The Emami group plans to become debt free by May 2020; it has a debt of around Rs.2600 crore and this deal will most certainly help it get there while bringing down the pledged shareholding from 72% to 32%.
Emami Cement operates one integrated cement facility and three grinding units with a total capacity of around 8.3 MTPA.
The stock price of Emami has reacted positively to this news. From its close of Rs.302.95 yesterday, it opened today at Rs.307.05, going up to an intraday high at Rs.311.10. It has come off the high and is now just about holding on to the green at Rs.303.