InvestorQ : How will the sale of Emami cement business impact the stock price going ahead?
ishika Banerjee made post

How will the sale of Emami cement business impact the stock price going ahead?

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Niti Shenoi answered.
8 months ago
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The latest update is that Emami is going to sell its cement business to Nuvoco Vistas, the cement manufacturing arm of Nirma Ltd for a consideration of Rs.5500 crore. Emami will be divesting its 100% equity in the company to Nuvoco. Emami Cements has an overall net debt of Rs.2500 crore and additional loans against shares of Rs.1000 crore and they will make a profit on sale even after considering these costs. This move is part of Emami’s overall plan to cut debt at the group level, which had gone up sharply to unsustainable levels. Apart from Nuvoco, other players like Shree Cements, Dalmia Bharat, Ultratech and Ambuja Cements were also in the fray to buy the stake in Nuvoco. This move should be positive for Emami stock price as it can now focus on its core FMCG business.

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