Crompton Greaves stock tanks 71.68% on de-merger
The shares of Crompton Greaves fell Rs 110.20, or 71.10 per cent at Rs 44.80. The scrip has seen a 52-week high of Rs 203.50.
- Mar 15, 2016,
- Updated Mar 15, 2016 4:25 PM IST
The shares of Crompton Greaves tanked by over 70 per cent as the company de-merged its consumer business from Tuesday. The prices reflect the market value for the firm's power business alone. The consumer unit is to be listed as a separate company next month.
The shares of Crompton fell Rs 111.10, or 71.68 per cent to Rs 43.90. The scrip has seen a 52-week high of Rs 203.50. Post de-merger, shareholders of Crompton Greaves will receive equity in the resultant compamy, Crompton Greaves Consumer Electricals, in the ratio of 1:1.
The transaction needs the approval of the Bombay High Court.
The company on March 9 had said it will sell its power business overseas to a US private equity fund for an enterprise value of 115 million euros. It included its European, North American and Indonesian power transmission businesses to First Reserve International.
The shares of Crompton Greaves tanked by over 70 per cent as the company de-merged its consumer business from Tuesday. The prices reflect the market value for the firm's power business alone. The consumer unit is to be listed as a separate company next month.
The shares of Crompton fell Rs 111.10, or 71.68 per cent to Rs 43.90. The scrip has seen a 52-week high of Rs 203.50. Post de-merger, shareholders of Crompton Greaves will receive equity in the resultant compamy, Crompton Greaves Consumer Electricals, in the ratio of 1:1.
The transaction needs the approval of the Bombay High Court.
The company on March 9 had said it will sell its power business overseas to a US private equity fund for an enterprise value of 115 million euros. It included its European, North American and Indonesian power transmission businesses to First Reserve International.