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Crompton Greaves gains on plan to divest its investment in CG-Lucy for 5.5 million euro

08 Oct 2015 Evaluate

Crompton Greaves is currently trading at Rs. 179.30, up by 0.95 points or 0.53% from its previous closing of Rs. 178.35 on the BSE.

The scrip opened at Rs. 179.90 and has touched a high and low of Rs. 181.80 and Rs. 178.30 respectively. So far 1,36,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 210.95 on 09-Oct-2014 and a 52 week low of Rs. 152.85 on 08-Sep-2015.

Last one week high and low of the scrip stood at Rs. 181.80 and Rs. 170.30 respectively. The current market cap of the company is Rs. 11,495.00 crore.

The promoters holding in the company stood at 34.38% while Institutions and Non-Institutions held 48.32% and 17.15% respectively.

Crompton Greaves (CG) has received an approval for divestment of its investment of 600,000 equity shares of Rs10 each made in the year 1994 in the share capital of CG Lucy Switchgear to W. Lucy & Company, UK for a consideration of euro 5.5 million and the execution of consequent definitive agreements. The deal forms part of CG strategy to focus on its B-to-B activity in the power HV sector.

Post divestment, Crompton Greaves will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG-Lucy.

CG Lucy Switchgear is a 50-50 manufacturing joint venture between the company and W. Lucy and Company, UK. Established in 1994, its factory is situated at Nasik, India and is a manufacturer for Ring Main Units (RMUs) in India.


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