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Avantha Group's Gautam Thapar to sell 42.7 Percent stake in Crompton Greaves, Company valued at $3 billion

Billionaire Gautam Thapar has put Crompton Greaves up for sale, said two persons familiar with the development. Part of his family's heritage for as long as India has been independent, the power transmission and distribution company is the biggest unit of Thapar's $4-billion Avantha Group. Goldman Sachs has been informally tasked with finding a buyer.

Thapar wants to sell his controlling 42.7 Percent stake to an overseas company seeking to establish itself in the Indian power transmission and distribution sector, said one of the persons.

A company spokeswoman declined to comment. "As a policy across the Avantha Group, we do not respond to rumours and market speculations," the spokeswoman said in reply to a questionnaire. There was no response to text messages sent to Thapar.

The promoters expect the company to be valued at $3 billion (INR 18,000 crore) against the current market valuation of about INR 9,500 crore, said one of the persons cited above. "There is keen interest from global players. However, it would be premature to estimate the right valuation," this person said.

Source-On Request