Shares of Emami Ltd rose as much as 15% to 409.3 on the BSE today after promoters of the FMCG company sold a 10% stake, raising approximately 1,600 crore. The transaction was executed on the stock exchanges on Monday and the purchasers included SBI Mutual Fund, L&T Mutual Fund, IDFC and PremjiInvest, the family office of Wipro Ltd chairman Azim Premji, among others. After the stake sale, the promoter holding in Emami will come down to 62.74%.

“The stake sale proceeds will reduce promoter debt which was used in creation of assets like cement, solar power etc," the FMCG major said in a statement.

“We have concluded a stake sale which will ease the liquidity position of the promoter group and reduce the debt," said Mohan Goenka, director of Emami Limited.

He also said that promoters are "committed to maintaining our significant majority stake in the company and do not anticipate any further dilution of stake in the foreseeable future."

In the third quarter ended December 31, 2018, Emami had posted a 6% decline in its net profit to 138.30 crore even though its revenue from operations grew by 7% to 810.90 crore.

In a February 1 report domestic brokerage Edelweiss said: “We expect revenue growth to improve gradually on the back of rural recovery and receding wholesale dependence." The brokerage maintained Hold rating on Emami with target price of 418.

Another brokerage Motilal Oswal has a Buy rating on Emami, with target price of 520.

Last month Emami had announced the acquisition personal care brand, Creme 21 of Germany, having major business in Middle-East and other focus markets. Creme 21 offers skin care and body care products such as creams and lotions, shower gels, sun care range, men’s range, etc.

In noon trade, Emami shares held on to most of its gains and wre trading at 406.45, up 14.5%. In comparison, the Sensex was up 0.35%.