Crompton Greaves shares crashed nearly 74 percent intraday Tuesday to hit fresh 52-week low of Rs 40.50 after demerger of its consumer products business. The stock was closed at Rs 155 on the Bombay Stock Exchange yesterday.
From today after this demerger, Crompton shares will include only power and industrial systems businesses.
The Mumbai-based electrical energy company had decided, in February 2015, to demerge its consumer products business into separate entity called Crompton Greaves Consumer Electricals as it believes that nature and risk involved in each power business and industrial systems business is distinct, necessitating different management approaches and focus.
It feels 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.
As per its scheme of demerger, shareholder holding one equity share of crompton Greaves on record date will get one share of Crompton Greaves Consumer Electricals. It has fixed March 16 as record date for the same.
Crompton Greaves Consumer Electricals is likely to be listed on exchanges in April.
According to Dhirendra Tiwari of Antique Stock Broking, consumer products business is valued at Rs 125 per share.
At 12:44 hours IST, the scrip of Crompton Greaves was quoting at Rs 44.80, down Rs 110.20, or 71.10 percent on the BSE.
Posted by Sunil Shankar Matkar