Much-delayed deal may be a small remedy for firm's Rs 1,200-cr total debt
The stock of Crompton Greaves was trading 2.18 per cent higher at Rs 70.35 on BSE
Company is presently a fully integrated B2B power transmission and industrial solutions provider
The stock dipped 9% to Rs 60 on the BSE in early morning trade
The stock was down 7% to Rs 70.45 on the BSE on back of heavy volumes
The decision to sell was announced some months earlier, at an estimated deal value of Rs 750 crore
The stock surged 13% to Rs 86.35 on BSE in intra-day trade.
Sale of automation business is key for rally to sustain
The company in April last year had sold its consumer electronics business for Rs 2,000 cr to a clutch of private equity firms
However, company's stock closed at Rs 132.45, down 1.34%, on BSE
In past four trading sessions, the stock rallied 25% as compared to 0.38% rise in the S&P BSE Sensex.
The stock moved higher by 3% at Rs 61.40, extending its previous day's 2% gain on the BSE.
In March, Crompton Greaves said it will sell its transmission and distribution businesses outside India to the US PE fund
A series of restructuring measures, including sale of its loss-making overseas power unit, has helped the company clear its debt of Rs 900 cr
Crompton Greaves shareholders will receive one equity share of Crompton Greaves Consumer Electricals.
Shareholders will receive equity in the resultant company, Crompton Greaves Consumer Electricals, in 1:1 ratio
The company has sealed a deal to sell its ailing international power business, which will help cut debt
The company will sell its transmission and distribution business to a US private equity fund for about Rs 851 crore
The stock rallied 9% to Rs 152 on the BSE.
Focus on brand building, expansion of product basket and channels will aid earnings growth going forward