WGI Emerging buys stake worth Rs 128 cr in Crompton Greaves

MUMBAI: US-based WGI Emerging Markets Smaller Companies Fund today acquired 1.37 per cent stake in engineering conglomerate Crompton Greaves for Rs 128 crore through an open market transaction.

According to bulk deal data available with NSE, WGI bought 86,22,451 shares, or 1.37 per cent stake, in Crompton Greaves (CG).

The shares were bought at an average price of Rs 148.38 per scrip, totalling at Rs 127.93 crore.

Meanwhile, JPMSL A/C Copthall Mauritius Investment offloaded 0.94 per cent stake in Crompton Greaves for Rs 87.86 crore.

Reacting sharply to the transactions, shares of the Avantha Group firm today climbed 6.63 per cent to end at Rs 156.10 on NSE. The stock jumped 9.28 per cent to Rs 160 in intra-day trade.

The proposed demerger plan of the firm’s consumer products business will come into effect from tomorrow.

Last year, Crompton Greaves’ Board approved demerger of its consumer products business into a separate listed company, Crompton Greaves Consumer Electricals Ltd (CGCEL).

The company had said that CGCEL will apply for listing its shares on BSE and NSE.

Last week, Crompton Greaves had also announced to sell its transmission and distribution (T&D) business outside India to a US private equity (PE) fund, First Reserve International, for an enterprise value of euro 115 million (about Rs 851 crore).

The company had said that the sale will enable it to reduce debt and focus on growing its India business.