PE firm Advent pares holding in CG Consumer

PE firm Advent pares holding in CG Consumer

US private equity Advent International has pared its holding further in Crompton Greaves Consumer Electricals (CGCEL). According to bulk deal data, Advent-owned Amalfiaco sold 6.06% stake in CG Consumer in two equal tranches at Rs 392 per share and Rs 393 per share. This resulted in raising of Rs 1,492 crore from the transaction. Alongside, Societe Generale has picked up 0.62% stake for Rs 153 crore. Meanwhile, identity of other buyers could not be ascertained. Investment banker said mutual funds and foreign portfolio investors were also among the buyers.
In 2015, Advent had teamed up Singapore-based Temasek to acquire 34.37% stake in CG Consumer from Gautam Thapar and his family. They had reportedly acquired the stake at Rs 105 per share.

In 2019, they had sold 8.2% stake in the company at an average price of Rs 249.2 per share.
At the end of December 2020 quarter, Advent held about 17.4% stake in the company.
Last month, CGCEL reported a 6.13% decline in consolidated net profit at Rs 151.09 crore for the quarter ended December 2020. The company had posted a net profit of Rs 160.97 crore in the October-December period a year ago.
However, its revenue from operations rose 25.84% to Rs 1,348.17 crore during the quarter under review as against Rs 1,071.29 crore in the corresponding period of last fiscal.
Revenue from lighting products rose 9.81% to Rs 312.26 crore as compared to Rs 284.34 crore in Q3 FY20.

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