Sugar firm Triveni Engineering & Industries Ltd on Wednesday said the company has sold its entire 21.85 per cent stake in Triveni Turbines for about Rs 1,600 crore.
The shares have been sold to Rati Sawhney, one of the promoter of Triveni Turbine, and a few institutional investors, including sovereign wealth funds of Singapore and Abu Dhabi as also a few domestic mutual funds.
In a statement, the company announced “divestment of its entire 21.85 per cent stake in Triveni Turbine Ltd worth Rs 1,609 crore, unlocking significant value for shareholders.” As per the shareholding pattern of June, Triveni Engineering had 21.85 per cent stake in Triveni Turbine while Rati Sawhney had 1.81 per cent stake.
This will further enable the long-term succession planning and facilitate focused management for the company, Triveni Engineering said.
Triveni Engineering is one of the largest integrated sugar producers in the country.
It also manufactures engineered-to-order high-speed gears and gearboxes, and has presence in water and wastewater management business.
Triveni Engineering sold shares to investors, including sovereign wealth funds such as GIC, Abu Dhabi Investment Authority (ADIA), foreign institutions such as Nomura, Plutus, and leading mutual funds such as SBI MF, Aditya Birla MF, Sundaram MF, Invesco MF.
Explaining the deal, Triveni Engineering said it sold about 10 per cent of the total paid-up capital of Triveni Turbines to Rati Sawhney by way of inter-se transfer between promoters at a price of Rs 229 per share through block deal on stock exchange.
It divested 11.85 per cent of the total paid-up capital of Triveni Turbines to institutional investors through block deals at a price of Rs 226.70 per share.
On the successful completion of the stake sale, Tarun Sawhney, Vice Chairman & Managing Director, Triveni Engineering & Industries Limited, said, “We have successfully monetised our stake in Triveni Turbine Limited in an endeavour to monetise non-core assets, unbundling of businesses.” The proceeds of this divestment will be utilised for rewarding shareholders as well as funding the growth and expansion for business, said Tarun Sawhney.
“We remain constructive on the outlook of our various businesses which will continue to strengthen the company’s strong market position and yield long-term returns for stakeholders,” he added.
The company’s steam turbine division was demerged into Triveni Turbine Limited and was listed on the NSE and BSE in 2011. PTI MJH HG HVA
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