Burmans may offload part of their stake in Dabur

Dabur promoters own 67.24% of the company, while the rest is with the public. Photo: Bloomberg
Dabur promoters own 67.24% of the company, while the rest is with the public. Photo: Bloomberg

Summary

Promoters of Dabur India may sell a small stake valued at 820 crore in the packaged goods company through a block deal.

Promoters of Dabur India Ltd may sell a small stake valued at 820 crore in the packaged goods company through a block deal on Tuesday, two people aware of the matter said.

The transaction is expected to take place at a 4% discount to the stock’s Monday closing price of 588.65, one of the people said, requesting anonymity. A 4% discount implies a price of 565. Mint could not immediately verify the reason Dabur’s promoter family is selling the stake.

The transaction will see the Burman family offload around 0.78% of their stake in the company, which is valued at 1.04 trillion.

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Dabur promoters own 67.24% of the company, while the rest is with the public, including 20.24% held by foreign portfolio investors.

Goldman Sachs is managing the transaction.

A spokesperson for Goldman Sachs and a member of the Dabur family did not immediately respond to a request for comment on Monday evening.

The Burmans acquired 14.3% of Eveready Industries in June, raising their shareholding in the company to 38.3%. As a result, they are the single largest shareholders in the company. Their imminent transaction in Dabur may, however, have no connection with the stake increase in Eveready.

Shares of Dabur have risen from a 52-week low of 482.25 on 17 June to a 52-week high of 610.75 on 7 December. The stock currently trades around its 52-week high.

Dabur, the owner of Real Juice and Hajmola brands, reported a profit of 396 crore on sales of 2,267 crore in the September quarter.

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