Crompton Greaves dips on Avantha's stake sale in CP division at a lower price

Avantha Holdings plans to sell its entire 34% stake in Crompton Greaves' consumer products business for Rs 2,000 crore

Shares of Crompton Greaves were down over 2.5% at Rs 164 after Avantha Holdings, an entity of the promoter Group of the company, announced the sale of its entire 34% stake in Crompton Greaves' consumer products business for Rs 2,000 crore which is much lower than market expectations.

Avantha Holdings plans to its entire stake in Crompton Greaves' consumer products business to private equity firms Temasek and Advent International, Crompton Greaves said in a release.

The share sale values consumer products business at Rs 5,800 crore, which is lower than market expectations. Brokerages were expecting Avantha Group to sell its stake for about Rs 6,500 crore.

The stock opened at Rs 171 and touched a low of Rs 155. At 12:55PM, over 4.6 million shares were traded on both the stock exchanges.