Avantha Holdings sells 8% stake in Crompton Greaves to institutional investors

Avantha Holdings has sold 52 million shares, representing about 8% of its stake in Crompton Greaves to institutional investors Goldman Sachs and Merrill Lynch Capital Markets at Rs 193 a share. Avantha Holdings is planning to raise about Rs 3,000 crore from asset sales and the proceeds will be used to cut the group’s debt. Further, Avantha Holdings is also planning to cut stake in the Crompton Greaves’ consumer product business, which is being hived off as a separate subsidiary. Avantha Group has been under pressure to cut debt raised through private equity firms and banks for its power business and earlier in the week had also announced its plan to sell of a 600-Mw power plant in Chhattisgarh to Adani Power for Rs 4,200 crore. Crompton Greaves is a global pioneering leader in the management and application of electrical energy. With more than 15,000 employees across its operations in around 85 countries, CG provides electrical products, systems and services for utilities, power generation, industries, and consumers.