Crompton Greaves rallies on overseas deal

DALAL STREET SPIKES

Crompton Greaves stock rallied after the company announced about an overseas acquisition. The stock gained 4.31 per cent in a rather subdued market to close at Rs 373.05 with volumes accounting for more than 1.6 lakh shares on BSE.

The price moment of the stock indicates that the market had got wind of the deal in advance. The stock in the past one month has rallied from a low of Rs 271.05 on January 24, to Friday's close of Rs 373.05, a rise of over 37 per cent.

The company on Friday announced that its has entered into an arrangement for the acquisition of the transformer businesses of Pauwels Group located in Belgium, Ireland, Canada, US and Indonesia at an enterprise value of euro 32.10 million.

The sales turnover of the Pauwels Group for the year ended December 31, 2004 was approximately euro 257 million.