Greaves Cotton in the red

Greaves Cotton opened 3.5% lower at Rs.132.95 and went down to an intraday low at Rs.129.15, a fall of almost 6.5%. It figures among the top five losers on the BSE currently.

Last year, the company acquired EV maker, Ampere Vehicles for Rs.77 crore. In this “first phase” it acquired 67.34% stake. At that time itself, the company had said that under “second phase”, it will acquire another 12-13% within three years, for Rs.75.50 crore, valuing the total deal at Rs.115 crore.

So as per that deal, yesterday, the company announced that it bought 4.77% stake for Rs.22.50 crore.

This is the same company which had the backing of Ratan Tata and Kris Gopalakrishnan, co-founder of Infosys and Hero Honda had pumped in some Rs.200 crore for a minority stake.

And in another news, the company’s Board approved buy back of 5.32% shares for an aggregate amount of Rs.227.50 crore, which works out to Rs.175. Tomorrow, 12th July, is the record date.