Crompton Greaves extends gain on signing share purchase pact with First Reserve

The stock moved higher by 3% at Rs 61.40, extending its previous day's 2% gain on the BSE.

Crompton Greaves has edged 3% higher at Rs 61.40, extending its 2% gain in the previous session on the BSE, after the company on Monday said it has signed a share purchase agreement with First Reserve International, a US private equity fund, for its power businesses in Europe, North America and Indonesia for an enterprise value of 115 million euros (about Rs 851 crore).

The company also appointed investment bankers to find potential investors/buyers for its other assets.

The electric equipment maker on 9 March said it was examining the possibility of disposing of other international B2B (business-to-business) automation businesses on valuations and terms acceptable to the company.

"The above strategic actions are intended to meet the company's objective of debt reduction and on focusing on its core operations in India which provide a significant growth opportunity," Crompton Greaves said in a statement.

The company believes this restructuring improves the company’s balance sheet and enhances shareholder’s value.

Till 02:06 PM, a combined 4.59 million shares changed hands on the counter on the BSE and NSE.