Emami to buy out Todi's stake in AMRI in a month

Written By Unknown on Senin, 30 Juni 2014 | 21.03

The West Bengal government has a notional one percent stake in the hospital venture, while the balance would be held by the Emami Group.

The Emami group would buy out 33 percent stake held by the Todis' of  Shrachi Group in the AMRI hospital chain within a month.

"Emami group will buy out the stake held by the Todis within a month," Emami group chairman R S Agarwal told reporters at the Merchants Chamber of Commerce here today.

The decision to buy out the stake in AMRI, Agarwal said, was that the Todis wanted to sell their shareholding and also because of the severe losses incurred after the fire at Dhakuria hospital in December 2010.

The West Bengal government has a notional one percent stake in the hospital venture, while the balance would be held by the Emami Group.

The Dhakuria branch of AMRI, the key revenue driver, was closed after the fire in which 91 patients were killed.

Recently, the state government gave permission to start the OPD clinic, with patient admission planned to start shortly as the authorities had obtained the fire license and securing the health approval in process.

"It would take some time for AMRI to make profits," Agarwal said.

AMRI has a total 1,000 beds in its three units - Dhakuria, Salt Lake and Bhubaneswar.

Work on the Rs 500-crore Rajarhat project would start shortly, Agarwal added.

Emami stock price

On June 30, 2014, Emami closed at Rs 507.45, up Rs 3.05, or 0.60 percent. The 52-week high of the share was Rs 539.40 and the 52-week low was Rs 393.40.


The company's trailing 12-month (TTM) EPS was at Rs 17.55 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 28.91. The latest book value of the company is Rs 44.96 per share. At current value, the price-to-book value of the company is 11.29.


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