Crompton Greaves drops in volatile trade after deferment of share buyback

Meanwhile, the S&P BSE Sensex was up 85.82 points or 0.43% at 20,044.29.

On BSE, 2.99 lakh shares were traded in the counter as against average daily volume of 4.18 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 4.64% at the day's low of Rs 85.25 at the onset of the trading session. The stock rose as much as 0.11% at the day's high of Rs 89.50 so far during the day. The stock had hit a 52-week high of Rs 141.70 on 8 October 2012. The stock had hit a 52-week low of Rs 71.70 on 25 June 2013.

The stock had underperformed the market over the past one month till 12 July 2013, rising 3.11% as compared to the Sensex's 4.82% rise. The stock had also underperformed the market in the past one quarter, falling 2.4% as compared to the Sensex's 9.41% surge.

The mid-cap company has equity capital of Rs 128.30 crore. Face value per share is Rs 2.

Crompton Greaves said that it has received the observations from the Securities & Exchange Board of India (Sebi) on 12 July 2013 and the company is in the process of incorporating the suggested amendments and therefore the proposed buyback will not commence on 15 July 2013 as disclosed earlier. Crompton Greaves said it will communicate the revised dates shortly. The announcement was made after market hours on Friday, 12 July 2013.

Meanwhile, Crompton Greaves during trading hours today, 15 July 2013 said that the company is in an advanced stage of fulfilling the requirements contained in the Sebi letter dated 12 July 2013, and will commence the buyback immediately thereafter.

Sebi had on 25 June 2013 issued revised guidelines for the buyback of shares.

Crompton Greaves' consolidated net profit declined 74.8% to Rs 25.27 crore on 10.1% growth in net sales to Rs 3387.30 crore in Q4 March 2013 over Q4 March 2012.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. Across its operations in around 85 countries, the company provides electrical products, systems and services for utilities, power generation, industries, and consumers. The company is organized into four business groups viz. power, industrial, automation and consumer.

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