Crompton Greaves share price surge over 8% on selling overseas T&D business


Crompton Greaves shares surged as much as 8.77 per cent in the early trade on Wednesday after it informed stock exchanges that it is selling it overseas transmission and distribution (T&D) business to First Reserve International Ltd, a US Private Equity Fund, for an enterprise value of euro 115 million.
At 10.35 am, shares of Crompton Greaves were trading 5.12 per cent up at Rs 146.70. The scrip opened at Rs 140.95 and has touched a high and low of Rs 151.80 and Rs 140.35, respectively, in trade so far. Sensex was down 142 points at 24,517.19.
The sale will enable the company to reduce debt and focus on its faster growing Indian businesses. The company continues to actively examine its other international B2B businesses with a view to monetise these businesses to enhance shareholder value.
In the past one year, the share price of Crompton Greaves plunged 20 per cent to Rs 139.55 till March 8, 2016, whereas the BSE Sensex slid 14.51 per cent during the same period.
For the quarter ended December 2015, the company posted a consolidated net loss of Rs 107.03 crore, down 139.02 per cent, against net profit of Rs 274.29 crore in the corresponding quarter a year ago.
Crompton Greaves is an Indian multinational company engaged in design, manufacturing, and marketing of products related to power generation, transmission, and distribution based in Mumbai.