Here's why Burman family trimmed its stake in Dabur
Members of the Burman family, which promotes the FMCG group Dabur India, have sold a 1% stake in the conglomerate via a block deal.
These shares were sold via two family controlled entities, Gyan Enterprises and Chowdry Associates.
How much stake did the promoters hold before the sale?
The promoters held a 67.24 per cent stake in the company as of September 2022.
What do the Burmans plan to do with the proceeds of the sale?
The purpose of this transaction is to raise funds for financing some ventures in the private hands of the Burman family, the company said in an exchange filing.
How did this sale impact the Dabur share price?
On Tuesday, Dabur’s stocks ended the session at Rs 579.8, a decline of 1.5 per cent.
The company has a market capitalization of just over Rs 1 lakh crore.
What businesses could the Burmans be investing into?
Nothing specifically was said on that count. The company recently announced its entry into the women’s personal hygiene space with the launch of Fem Ultra Care Sanitary Napkins.
Have there been any concerns about the company’s growth prospects?
Yes, there have been concerns about rural growth, a market on which the company depends to a great extent. Analysts, by and large, remain sceptical about Dabur’s growth prospects over the coming years.
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