Crompton Greaves Electricals Ltd- Upper circuit on Debut

The demerged entity of Crompton Greaves- Crompton Greaves Electricals Ltd., has started trading on both the stock exchanges today and on the debut itself the stock has hit the upper circuit by gaining 5 percent, now trading at Rs.135 per share. The stock opened for trading at 129 per share. 

In the action packed debut for the counter, two private equity investors viz., Advent International and Temasek made an open offer to acquire at least 26 percent in the company.  If the acquisition goes through of the said 162,953,997 equity shares constituting 26 percent of the total share capital,  Advent International and Temasek will become the majority shareholder in the company.  An amount of Rs. 1,695 for the additional 26 percent will be offered in cash as per the BSE filing made by the company. The open offer has been made at Rs. 104 per share. Only last year, Advent International and Temasek both had acquired from Avantha Group its entire holding of 34.37 percent in the demerged entity of Cromption Greaves for Rs. 2,000 crore. 

Crompton Greaves  Limited  (CGL), incorporated in India with its shares listed on stock exchanges , is conducting its business under three business divisions viz., power systems , industrial systems and consumer products.  CGL  in its letter dated 9th of March , 2015  to stock exchanges announced its strategic decision to demerge its consumer products division into a wholly owned subsidiary.