The PE owners also announced the statutory open offer to acquire an additional 26 per cent stake in the company, at Rs 104 a share. This would cost them Rs 1,695 crore. With the strong response to the stock on the exchanges, the open offer is not likely to succeed at this price. About a year before, the Avantha Group sold its entire holding of 34.37 per cent in the demerged consumer products business of Crompton Greaves to the PE duo for Rs 2,000 crore. Acquisition of an additional 26 per cent stake would have also given them a majority holding.
“There is no plan to revise the open offer price at this stage,” said a joint manager to the open offer. HSBC Securities and Barclays Bank are the joint managers for the open offer. “There is no plan to revise the offer price at this stage,” said a joint manager. “The offer period is likely to be in July but it depends on the approvals required from Sebi (the capital markets regulator.”
CGCE plans to focus on investing and building the Crompton brand, beside bringing innovation in its core categories. The consumer products range from fans, lamps and luminaires to pumps and household appliances such as water heaters, mixer grinders, toasters, irons and electric lanterns.