Thermax Limited Sells Stake in Covacsis Technologies for ₹10 Crore

Thermax Limited has officially announced the sale of its stake in Covacsis Technologies Private Limited. This transaction, completed through a Share Purchase Agreement with Infinite Uptime Inc., USA, results in Covacsis ceasing to be an associate company of Thermax. The sale, executed under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, signifies a strategic decision by the company.

Details of the Transaction

As per the disclosure made to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the agreement for the sale was signed on 3rd April 2025, with the transaction set for completion on 4th April 2025. The stake was sold for approximately ₹10 crores, and Covacsis had incurred a loss of ₹1.79 crores in FY 2023-24, of which ₹0.30 crores was consolidated into Thermax’s financials. The transaction does not fall under related party transactions, and the buyer is not associated with Thermax’s promoter group.

Regulatory Compliance and Business Impact

Thermax Limited has ensured full compliance with SEBI’s regulatory framework, particularly Regulation 30 of the SEBI (LODR) Regulations, 2015. The sale does not involve a slump sale or a Scheme of Arrangement. By divesting its stake in Covacsis, Thermax aims to realign its investment strategy, focusing on core business areas. This move reflects the company’s intent to streamline operations and optimise financial performance.

Thermax Share Performance 

As of April 04 2025, at 9:50 AM, Thermax share price was trading at ₹3,475.40, reflecting a decline of 2.09% from its previous closing price. Over the past month, it has surged by 8.46%.

Conclusion

The sale of Thermax Limited’s stake in Covacsis Technologies marks a significant corporate development. By executing this transaction, Thermax has restructured its investment portfolio while maintaining compliance with SEBI’s regulations. The move highlights the company’s strategic focus on financial prudence and operational efficiency.

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