Crompton Greaves to demerge consumer products business

MUMBAI (Reuters) - Power equipment maker Crompton Greaves Ltd's board has approved the proposed demerger of its consumer products business, the company said on Thursday.

"(The board) decided to implement a 100 percent demerger of the consumer products business, such that the shareholding pattern of the resulting consumer company shall mirror the shareholding pattern of Crompton Greaves," the company said in a statement.

The company, majority owned by Avantha Holdings Ltd, had in July last year proposed a demerger of the consumer products business unit, a move that found favour among investors.

Avantha Holdings sold a $139 million stake in Crompton Greaves in November and owned a 34.37 percent stake at the end of December, according to Thomson Reuters data.

Crompton Greaves shares closed up 2.72 percent on Thursday, compared with the benchmark Sensex that rose 0.48 percent.

(Reporting by Aman Shah in Mumbai; Editing by Prateek Chatterjee)