Crompton Greaves stock tanks 71.68% on de-merger

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.