Voltas gains 4% on talk of stake sale to PE firm

Shares of Voltas soared 4% to Rs 108.15 as market was abuzz with talk that the Tata Group company is close to signing a deal to sell stake to a private equity (PE) firm. Brokers said that the company is in an advanced stage to sell a stake to a Londonbased PE in a deal that could be priced at Rs 122-125 for every share.

Responding to ET’s query on the stake sale, Voltas said, “We are not aware of any such transaction.” Market players said that the company may be looking at raising funds through equity sale since its debt has mounted due to losses is overseas operations, increase in debtors, and investments in its acquisition Rohini Electricals. Voltas has three key business—engineering, power equipment and consumer durables.