Crompton Greaves demerged consumer business, Crompton Greaves Consumer Electricals listed on BSE and NSE on Friday as a separate entity. On the BSE the scrip listed at Rs 126.20 and on the NSE it kicked off trading at Rs 129. Later, the share price of the company hit upper circuit and surged 5 per cent to Rs 132.50.
On BSE, equity shares of CGCE were admitted to dealings on the Exchange in ‘T’ Group of Securities.
Crompton Greaves Limited shareholders were given 1 equity share of Rs 2 in CGCE for every 1 equity share of Rs 2 each held.
Promoter holdings in CGCE stood at 34.38 per cent while public hold 65.62 per cent stake as on March 31, 2016.
Private equity investors Advent International and Temasek launched Rs 1,695 crore open offer to acquire 26 per cent stake in CGCEL to become majority shareholders.
According to Religare Insitutional Research, the current ROCE of 26 per cent is likely to increase by 500- 600bps over FY16-FY18 on the back of increasing asset turns and improvement in operating margins. The brokerage house in a research note said, “CGCE will pay its debt of Rs 730 crore by FY19. Margins are likely to improve slowly but steadily over FY16-FY18.”