Emami Group takes bold steps to cut debt; plans to sell its hospital

One of the major skin care and healthcare brands in India, Emami Group, is in talks with American multinational investment bank-JP Morgan for raising Rs 1,500 crore through Non-Convertible Debentures (NCDs).

The Indian conglomerate company headquartered in Kolkata, Emami Ltd, is in advanced negotiation with JP Morgan. The latter is likely to subscribe to Rs 1,500 crore issue of NCDs on private placement basis in Emami’s five groups, to name a few- Emami Realty, Emami Frank Ross and Emami Capital Markets. The entire NCD transaction is expected to be completed by the next two months.

Meanwhile, according to further reports, Emami Ltd is also planning to sell its hospital, namely Advanced Medical Research Institute (AMRI) hospital, which is a 400-bed hospital in Bhubaneshwar to Krishna Institute of Medical Sciences (KIMS), an 1800-bed multi-specialty hospital in Hyderabad. The company is selling it for Rs 300 crore to become debt-free.

Emami Ltd went into debt crisis after the promoters pledged their shares to raise funds for investing into other businesses like cement, paper and real estate, etc.

At 10 am on Thursday, the stock of Emami Ltd is trading at Rs 331.10, down by 1.40 per cent against its previous close of Rs 335.80 on BSE.