Comments
Avantha Group company Crompton Greaves has tweaked its plan to demerge the consumer products business after feedback from investors and the stock exchanges.
“The Board has now reconsidered and approved the contours of the proposed demerger and decided to implement a 100 per cent demerger of the consumer products business, such that the shareholding pattern of the resulting consumer company shall mirror the shareholding pattern of Crompton Greaves,” the power equipment maker said in communication to the bourses.
It may be recalled that the company’s board had approved a different demerger scheme in October last year.
The consumer products business was to be hived off into a new listed entity — Crompton Consumer Products Ltd (CCPL) in such a way that its ownership is distributed three ways — to Crompton Greaves, promoters of Compton Greaves (which includes billionaire Gautam Thapar and family) and the public. This was to be followed by Thapar selling part of his ownership in the new entity.
A 100 per cent demerger will create a more flexible capital structure and generate more interest from potential investors. The move spells increased growth opportunities for the consumer products business and the power, industrial and automation business, the filing said.
The shares of Crompton Greaves were up by 4.21 per cent to close at ₹181.9 on the National Stock Exchange today.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.