Mumbai, Mar 15 (IANS): The shares of Crompton Greaves tanked by over 70 percent as the company de-merged its consumer business from Tuesday. The prices reflect the market value for the firm's power business alone. The consumer unit is to be listed as a separate company next month.
The shares of Crompton fell Rs.110.20, or 71.10 percent at Rs.44.80. The scrip has seen a 52-week high of Rs.203.50. Post de-merger, shareholders of Crompton Greaves will receive equity in the resultant compamy, Crompton Greaves Consumer Electricals, in the ratio of 1:1.
The transaction needs the approval of the Bombay High Court.
The company on March 9 had said it will sell its power business overseas to a US private equity fund for an enterprise value of 115 million euros. It included its European, North American and Indonesian power transmission businesses to First Reserve International.