Crompton Greaves gains after selling overseas T&D businesses

Crompton Greaves rose 5.77% at Rs 147.60 at 10:30 IST on BSE after the company announced that it has approved the sale of its European, North American and Indonesian transmission & distribution businesses to a US-based private equity fund.

The announcement was made during trading hours today, 9 March 2016.

Meanwhile, the BSE Sensex was down 96.92 points, or 0.39%, to 24,562.31.

Higher than usual volumes were witnessed on the counter. On BSE, so far 17.39 lakh shares were traded in the counter, compared with an average volume of 10.72 lakh shares in the past one quarter. The stock hit a high of Rs 151.80 and a low of Rs 140.35 so far during the day. The stock hit a 52-week high of Rs 203.50 on 5 January 2016. The stock hit a 52-week low of Rs 113.65 on 12 February 2016. The stock had outperformed the market over the past one month till 8 March 2016, rising 9.58% compared with gains of 1.53% in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 25.81% as against Sensex's 2.57% fall.

The large-cap company has an equity capital of Rs 125.35 crore. Face value per share is Rs 2.

Crompton Greaves announced that it has approved the sale of its European, North American and Indonesian transmission & distribution (T&D) businesses to a US-based private equity fund, First Reserve International for an enterprise value of 115 million euros. The offer is subject to regulatory, shareholders approvals and signing of definitive share purchase agreement. The sale will enable the company to reduce debt and focus on its faster growing Indian businesses. The company said it continues to actively examine its other international B2B businesses with a view to monetise these businesses to enhance shareholder value.

Crompton Greaves reported consolidated net loss of Rs 107.03 crore in Q3 December 2015 as against net profit of Rs 274.29 crore in Q3 December 2014. The consolidated net sales declined 14.2% to Rs 2067.80 crore in Q3 December 2015 over Q3 December 2014.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. It provides electrical products, systems and services for utilities, power generation and industries. The company is organised into three business groups: power, industrial, and automation.

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