Crompton Greaves jumps on bonus issue

Crompton Greaves ended at Rs 426, higher by Rs 29 or 7.4%, on the BSE.

The stock had opened at Rs 408, and touched a high of Rs 429 and a low of Rs 396 during the day.

The counter saw trades of 5.54 lakh shares as against the two-week average of 1.01 lakh shares.

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(Updated at 1508pm)

Crompton Greaves has now soared 7% to Rs 423 after announcing the bonus issue.

According to a release issued by the company to the BSE today, the board has recommended bonus shares in the ratio of 3:4 (three free equity Shares for every four equity shares held). The board of directors also declared an interim dividend of 70% (Rs 1.40 per share on Rs 2 paid-up equity share).

Further, the company has posted 62% jump in net profit at Rs 200 crore for the quarter ended December, 2009, when compared with Rs 123 crore net in December 2008 quarter.

The company also decided to divest its 59% stake (11.02 million equity shares) in Malanpur Captive Power to Avantha Power and Infrastructure at an aggregate price of Rs 51 crore, which works out to Rs 46.63 per share. The board approved the amalgamation of Brook Crompton Greaves, a wholly owned subsidiary, with the company.