Crompton Greaves slumps on stake sale

Crompton Greaves is amongst the top losers of the day, currently down almost 5% at Rs.194.60, with a spurt in volumes of over 12 times. Intra day high just fell short of Rs.200 mark at Rs.199.90.

Following its announcement on Monday that its promoter group company, Avantha Holdings, might sell stake in the company, today, the BSE and NSE saw block deals on the counter. Some 56 million shares or 8.88% of Crompton’s equity changed hands and this we now know was Avanatha selling part of its stake. But earlier, reports had suggested that Avantha would offload 7% stake.  The shares were sold at an average price of ranging from Rs.192 to Rs.204.50/share. This is part of the plan of the company to sell stake, raise funds to reduce debt