Crompton Greaves shares plunge over 20% on demerger

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New Delhi | Updated: March 15, 2016 4:18:59 PM

Crompton Greaves shares plunged over 20 per cent intraday to Rs 40.30 on NSE on the back of proposed demerger plan of its consumer products business which came into effect from Tuesday.

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Crompton Greaves shares plunged over 20 per cent intraday to Rs 40.30 on NSE on the back of proposed demerger plan of its consumer products business which came into effect from Tuesday. (Express Photo)

Crompton Greaves shares plunged over 20 per cent intraday to Rs 40.30 on NSE on the back of proposed demerger plan of its consumer products business which came into effect from Tuesday. 

Share price of the company closed 16.42 per cent down at Rs 44.30 on NSE.

According to Religare Institutional Research, the demerged power and industrial business will be debt-free post conclusion of the sale of its international businesses. This along with Crompton Greaves’ renewed focus on the B2B business would lead to a meaningful improvement in its return ratios from here on.

The brokerage house said, “Stock price now reflects that of the power systems and industrial business and valued at Rs 55.”

For the quarter ended December 2015, Crompton Greaves posted a consolidated net loss of Rs 107.03 crore, down 139.02 per cent, against net profit of Rs 274.29 crore in the corresponding quarter a year ago.

Crompton Greaves Consumer Electricals is likely to be listed on exchanges in April. The share price of the company closed at Rs 155 on Monday.

 

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