 "Crompton Greaves dips after huge block deals")
Crompton Greaves has dipped 5% to Rs 194 on National Stock Exchange (NSE) after Avantha Holdings Ltd, the promoter group company, sold part of its stake through multiple block deals on NSE and BSE.
At 0916 hours, a combined 55.67 million shares representing 8.88% of total equity of the company changed hands on the counter on NSE and BSE.
On NSE, the stock opened at Rs 198 and touched low of Rs 192 so far. On BSE, it opened at Rs 198 and hit a low of Rs 193.
Crompton Greaves had said in a statement on Monday that one of its promoter group entities, Avantha Holdings, would sell a portion of its shareholding in the company.
According to reports, Avantha Holdings Ltd, the promoter of the engineering and consumer goods maker, plan to sell about 42 million shares, or a 7% stake, in through block deals.
The offer is in the range of Rs 192 to Rs 204.5 a share, an up to 6% discount to Crompton's close on Wednesday, the Reuters report suggests.
The stake sale is part of a proposal to reduce debt at the holding company, which earlier raised funds from two overseas private equity funds in a structured deal.
As of September 2014, Avantha Holdings Ltd held 255.94 million or 40.84% stake in Crompton Greaves, the shareholding pattern data shows.
At 0916 hours, a combined 55.67 million shares representing 8.88% of total equity of the company changed hands on the counter on NSE and BSE.
On NSE, the stock opened at Rs 198 and touched low of Rs 192 so far. On BSE, it opened at Rs 198 and hit a low of Rs 193.
Crompton Greaves had said in a statement on Monday that one of its promoter group entities, Avantha Holdings, would sell a portion of its shareholding in the company.
According to reports, Avantha Holdings Ltd, the promoter of the engineering and consumer goods maker, plan to sell about 42 million shares, or a 7% stake, in through block deals.
The offer is in the range of Rs 192 to Rs 204.5 a share, an up to 6% discount to Crompton's close on Wednesday, the Reuters report suggests.
The stake sale is part of a proposal to reduce debt at the holding company, which earlier raised funds from two overseas private equity funds in a structured deal.
As of September 2014, Avantha Holdings Ltd held 255.94 million or 40.84% stake in Crompton Greaves, the shareholding pattern data shows.
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