Crompton Greaves jumps on demerger proposal

Reuters Market Eye - Shares in power equipment maker Crompton Greaves jump 11.8 percent after proposing to demerge its consumer products business unit into a separate listed company, the company said in a statement on Thursday.

"Demerger would result in the consumer business being accorded a higher multiple than the entire parent company. Peers in electrical consumer business trade at a higher multiple as compared to Crompton Greaves," said IIFL Capital in a note to its clients.

(Reporting by Abhishek Vishnoi)