Avantha Holdings today offloaded 8.3 per cent stake in Cromptom Greaves for over Rs 1,000 crore to lower debt.
Cromptom Greaves (CG) is Avantha Group company engaged in power sector.
“Avantha Holdings today sold 5.2 crore shares amounting to 8.3 per cent stake in CG through open market,” CG informed in a regulatory filing to the stock exchange.
After the sale, Avantha Holdings’ stake in CG is down to 32.54 per cent from 40.84 per cent.
Shares were sold on an average price of Rs 192.61 apiece, valuing the transaction at Rs 1,001.57 crore.
Following the transaction, CG shares plummeted 6.11 per cent to close at Rs 191.95 on the BSE.
Earlier this week, Adani Power entered into a binding agreement with Avantha group to buy out its Korba West unit for more than Rs 4,200 crore.
Korba West Power owns a completed 600 MW coal-based power plant at Korba, and an expansion phase is in progress.
The USD 4 billion Avantha Group is has business interests in diverse areas, including pulp and paper, power transmission and distribution equipment and services, food processing, farm forestry, chemicals, energy, infrastructure, information technology (IT) and IT-enabled services.