Triveni Engineering & Industries Limited (TEil or Company), one of the largest integrated sugar producers in the country; amongst the leading manufacturers of engineered-to-order high-speed gears & gearboxes and a leading player in the water and wastewater management business, today announced the divestment of its entire 21.85% stake in Triveni Turbine Limited (TTL) worth 1,609 crore, unlocking significant value for shareholders. Driven by strong investor demand, the sale of shares was to marquee 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.
The Company has undertaken the sale on September 21, 2022 in the following manner:
1) ~10% of the total paid-up capital of TTL was sold to Mrs. Rati Sawhney, one of the existing promoters by way of inter-se transfer between promoters at a price of 229 per share(based on the previous day closingprice of 228.95 per share on NSE) through block trading window on stock exchange; and
2) ~11.85% of the total paid-up capital of TTL was sold to multiple leading institutional investors through block trading window on thescreen-based tradingsystem of thestock exchanges at a price of 226.70 per share
On the successful completion of the stake sale, Mr. Tarun Sawhney, Vice Chairman & Managing Director, Triveni Engineering & Industries Limited said, "We are delighted to announce that we have successfully monetized our stake in Triveni Turbine Limited in an endeavor to monetize non-core assets, unbundling of businesses. This will further enable the long-term succession planning and facilitate focused management for the Company. The response to the stake sale from the investor community has been overwhelming, enabling us to close the transaction materially higher than the minimum floor price that was approved by the Board of Directors. As communicated earlier, the proceeds of this divestment will be utilized for rewarding shareholders as well as funding the growth and expansion for business. 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."
Ambit Capital acted as the sole broker to the transaction.