Crompton Greaves lost 71.81% to Rs 43.70 at 15:25 IST on BSE following the demerger of consumer business.
Meanwhile, the BSE Sensex was down 256.61 points, or 1.03%, to 24,547.67
The stock saw high volume. On BSE, so far 1.71 crore shares were traded in the counter, compared with an average volume of 12.77 lakh shares in the past one quarter. The stock hit a high of Rs 53.70 and a low of Rs 40.50 so far during the day.
The large-cap company has an equity capital of Rs 125.35 crore. Face value per share is Rs 2.
The scheme of arrangement in the nature of demerger in February 2015 provided for the demerger and hiving off of the consumer products business of Crompton Greaves on a going concern basis and its transfer to and vesting into Crompton Greaves Consumer Electricals. Shareholders holding one equity share of Crompton Greaves on record date of 16 March 2016 will get one share of Crompton Greaves Consumer Electricals.
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Crompton Greaves by itself and through its subsidiaries is engaged in business of power, industrial systems and consumer products. The nature and risk involved in each power business and industrial systems business is distinct, necessitating different management approaches and focus, Crompton Greaves said. The demerger will enhance strategic flexibility to build a vibrant industrial platform, enable a dedicated management focus and access to varied sources of funds for rapid growth of both businesses, the company said.
Following the demerger, Crompton Greaves Consumer Electricals shares are likely to get listed on the stock exchanges.
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. Consolidated net sales declined 14.2% to Rs 2067.80 crore in Q3 December 2015 over Q3 December 2014.
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