 "Crompton Greaves gains over 10% on demerger plan")
Crompton Greaves has surged 12% to Rs 209 in early morning deals on the Bombay Stock Exchange (BSE), after the company’s board proposed to demerge its consumer products business unit into a separate listed entity.
"The board believes that such a demerger will create better growth opportunities for its two large but significantly different businesses - Power, Industrial and Automation which is a B2B business, and the consumer products business which is B2C," Crompton Greaves said in a statement.
"The board also believes that this will create a more flexible capital structure for the two businesses to grow independently, allow them to pursue more ambitious strategic goals and, thus, create further value for existing shareholders," it added.
The stock opened at Rs 200 and has seen heavy trading volumes. A combined 5.27 million shares have already changed hands in first 15 minutes of trade on the NSE and BSE.
"The board believes that such a demerger will create better growth opportunities for its two large but significantly different businesses - Power, Industrial and Automation which is a B2B business, and the consumer products business which is B2C," Crompton Greaves said in a statement.
"The board also believes that this will create a more flexible capital structure for the two businesses to grow independently, allow them to pursue more ambitious strategic goals and, thus, create further value for existing shareholders," it added.
The stock opened at Rs 200 and has seen heavy trading volumes. A combined 5.27 million shares have already changed hands in first 15 minutes of trade on the NSE and BSE.
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