Crompton Greaves jumps on demerger proposal

Written by Reuters | Mumbai | Updated: Jul 17 2014, 17:04pm hrs
Shares in Indian power equipment maker Crompton Greaves jump 10.3 per cent after proposing to demerge its consumer products business unit into a separate listed company, the company said in a statement on Thursday.

"Demerger would result in the consumer business being accorded a higher multiple than the entire parent company. Peers in electrical consumer business trade at a higher multiple as compared to Crompton Greaves," said IIFL Capital in a note to its clients.