Crompton Greaves top gainer

Crompton Greaves is currently the top gainer on the BSE, up over 9.5% at Rs.203 levels, with an intra day high at Rs.208.90. Its 52-week is at Rs.21925.

The stock has surged, reacting to the announcement made by the company today morning. At its annual strategic review meeting, hled yesterday, the Board has proposed to demerge its Consumer Products business unit into a separate listed Company.

The Board believes that such a demerger will create better growth opportunities for its two large but significantly different businesses - Power, Industrial and Automation which is a B2B business, and the Consumer Products business which is B2C. The Board also believes that this will create a more flexible capital structure for the two businesses to grow independently, allow them to pursue more ambitious strategic goals and, thus, create further value for existing shareholders.

The Board has constituted a Committee of Directors to examine all relevant aspects of the process of demerger and listing and make suitable recommendations to the Board. Thus the prospect of this good value unlocking has led to the spike up in price.