Triveni Engineering divests stake in Triveni Turbine in line with promoters' succession planning

Leading sugar maker Triveni Engineering & Industries on Wednesday divested its entire 21.85% stake in Triveni Turbine for Rs 1,609 crore through block deals as part of the succession planning of the promoter Sawhney family, aligning the shareholding structure of the two companies in line with the businesses managed by brothers Tarun and Nikhil.

Tarun Sawhney is the managing director of Triveni Engineering while younger brother Nikhil Sawhney is the managing director of Triveni Turbine.

Rati Sawhney, a promoter of the company and the mother of the two brothers, acquired about 10% stake in Triveni Turbine at a price of Rs 229 per share. The stock had closed at Rs 228.95 on the NSE on Tuesday.


A clutch of investors including sovereign wealth funds GIC and Abu Dhabi Investment Authority (ADIA), foreign institutions Nomura and Plutus and mutual funds SBI MF, Aditya Birla MF, Sundaram MF and Invesco MF picked up the remaining 11.85% stake at Rs 226.7 per share. Ambit Capital brokered the transaction.

The stock of Triveni Turbine closed marginally up at Rs 229 on NSE on Wednesday. Triveni Engineering & Industries gained 2.2% to close at Rs 274.5. Nifty ended the session 0.55% in the red.

“We are delighted to announce that we have successfully monetised our stake in Triveni Turbine Limited in an endeavour to monetise non-core assets (and) unbundling of businesses,” Tarun Sawhney said in a statement. “This will further enable the long-term succession planning and facilitate focused management for the company.”

The proceeds of the sale will be utilised for “rewarding shareholders” and funding business expansion, he said.

Triveni Turbine was hived off from Triveni Engineering in 2011. The parent company had retained a 22% stake while the rest was allotted to its shareholders.