Nippon Life India Asset Management Ltd, acting on behalf of Nippon India Mutual Fund, has increased its shareholding in Crompton Greaves Consumer Electricals Limited. The fund acquired an additional 9.25 lakh equity shares of the consumer electricals company through open market purchases. This transaction, detailed in a disclosure to the stock exchanges dated June 12, 2025, has raised Nippon India Mutual Fund's total stake in Crompton Greaves Consumer Electricals Limited to 4,55,60,786 shares, which translates to 7.0763% of the company's total voting capital.
| Particulars | Details |
|---|---|
| Acquirer | Nippon Life India Trustee Limited A/c through various schemes of Nippon India Mutual Fund |
| Target Company (TC) | CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED |
| Acquirer belongs to Promoter/Promoter group | No |
| Stock Exchanges where TC shares are listed | The National Stock Exchange of India Ltd, BSE Limited |
| Details of Acquisition | |
| Shares Acquired (Carrying Voting Rights) | 9,24,595 |
| % of Total Share/Voting Capital Acquired | 0.1436% |
| % of Total Diluted Share/Voting Capital Acquired | 0.1436% |
| Mode of Acquisition | Open Market |
| Period of Acquisition Transactions | From June 13, 2024 to June 10, 2025 |
| Date of Disclosure | June 12, 2025 |
| Holding Before Acquisition (Acquirer along with PACs) | |
| Shares carrying voting rights | 4,46,36,191 |
| % of Total Share/Voting Capital | 6.9327% |
| % of Total Diluted Share/Voting Capital | 6.9327% |
| Holding After Acquisition (Acquirer along with PACs) | |
| Shares carrying voting rights | 4,55,60,786 |
| % of Total Share/Voting Capital | 7.0763% |
| % of Total Diluted Share/Voting Capital | 7.0763% |
| Target Company Capital Structure (Before and After Acquisition) | |
| Equity Share Capital / Total Voting Capital | ₹1,28,77,05,826/- (representing 64,38,52,913 shares at the face value of ₹2 per share) |
| Total Diluted Share/Voting Capital | ₹1,28,77,05,826/- (representing 64,38,52,913 shares at the face value of ₹2 per share) |
Detailed Analysis of the Acquisition
The recent acquisition by Nippon India Mutual Fund in Crompton Greaves Consumer Electricals Limited underscores a strategic move by the fund house to augment its investment in the consumer durables sector. The purchase of 9,24,595 shares, constituting 0.1436% of Crompton Greaves' equity, was executed through open market operations. These transactions occurred over a period spanning from June 13, 2024, to June 10, 2025, with the formal disclosure being made on June 12, 2025.
This disclosure falls under the purview of Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. These regulations mandate timely reporting by entities when their shareholding in a listed company crosses specified thresholds, ensuring transparency in market dealings. Prior to this acquisition, Nippon India Mutual Fund, along with any Persons Acting in Concert (PACs), held 4,46,36,191 shares, or 6.9327% of the voting capital. The additional purchase has now increased this holding to 4,55,60,786 shares, representing 7.0763% of both the total share/voting capital and the total diluted share/voting capital of Crompton Greaves Consumer Electricals Limited.
The filing explicitly states that the acquirer, Nippon Life India Trustee Limited (acting for Nippon India Mutual Fund schemes), does not belong to the Promoter or Promoter group of Crompton Greaves Consumer Electricals Limited. Furthermore, the disclosure confirms that the holding, both before and after the acquisition, does not include any shares in the nature of encumbrance (such as pledge, lien, or non-disposal undertakings), any voting rights (VR) acquired otherwise than by equity shares, or any warrants/convertible securities or other instruments that would entitle the acquirer to receive shares carrying voting rights in the target company.
Additional Context
Crompton Greaves Consumer Electricals Limited's shares are listed on both the National Stock Exchange of India Ltd (NSE) and BSE Limited. The company's capital structure, as per the disclosure, remained unchanged by this transaction. The equity share capital and total voting capital of Crompton Greaves Consumer Electricals Limited stood at ₹1,28,77,05,826, comprising 64,38,52,913 equity shares with a face value of ₹2 each. This figure also represents the total diluted share/voting capital of the company, both before and after the reported acquisition.
The acquisition by a major institutional investor like Nippon India Mutual Fund is a routine market activity but provides crucial insights into institutional interest in a company. Such disclosures are vital for maintaining market integrity and providing all stakeholders with a clear view of significant shareholding changes.
Market Impact and Outlook
An increase in stake by a well-known asset management company such as Nippon India Mutual Fund is often viewed by the market as a sign of confidence in the target company's management, business model, and growth prospects. While the immediate impact on the stock price can vary based on broader market conditions and other company-specific news, such institutional buying can contribute to increased investor interest and potentially support the stock's valuation over the long term.
This specific acquisition, though representing a relatively small percentage increase (0.1436%), reinforces Nippon India Mutual Fund's position as a significant institutional shareholder in Crompton Greaves Consumer Electricals. For other investors and market analysts, this development offers an updated perspective on the institutional ownership pattern of the company, which can be a factor in their investment analysis and decision-making processes. The continued accumulation of shares by institutional investors can also enhance the stock's liquidity in the market.
