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Crompton Greaves tanks as Avantha offloads 8.3 pct

Avantha Holdings has raised R1,002 crore by offloading 8.3% of equity in Crompton Greaves…

Avantha Holdings has raised R1,002 crore by offloading 8.3% of equity in Crompton Greaves, via a bulk deal on NSE on Thursday. Avantha, which is the holding company of Crompton Greaves, sold 5.2 crore shares at R192.61 per share, data showed.

Goldman Sachs Singapore PTE and Merrill Lynch Capital Markets together purchased shares worth R332 crore. Goldman Sachs acquired 1.13 crore shares at R192.11 per share. Merrill Lynch Capital Markets bought 60 lakh shares at R192.

Post the share sale, Avantha Holding’s stake will drop to 32.54% from 40.84% earlier. Avantha’s current stake in the company is valued at R3,909.5 crore as of Thursday’s closing price on NSE.

The scrip plummeted 6.3% on Thursday. The combined traded volume on both bourses stood at 9.5 crore against 30-day average volume of 56 lakh shares.

Analysts said selling in the counter intensified after reports that the promoter firm intends to offload stake via block deals. However Avantha Holdings said, “This is a one-time transaction by the holding company to reduce debt.” The stock outperformed the Sensex with a return of 48.9% in 2014

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