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Crompton Greaves gains after winning order

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Capital Market
Last Updated : Jun 27 2013 | 11:30 AM IST

The company made the announcement after market hours on Wednesday, 26 June 2013.

Meanwhile, the S&P BSE Sensex was up 200.33 points, or 1.08%, to 18,752.45.

On BSE, 1.09 lakh shares were traded in the counter as against an average daily volume of 3.44 lakh shares in the past one quarter.

The stock hit a high of Rs 81.60 and a low of Rs 78.70 so far during the day. The stock had hit a 52-week high of Rs 141.70 on 8 October 2012. The stock had hit a 52-week low of Rs 71.70 on 25 June 2013.

The stock had underperformed the market over the past one month till 26 June 2013, sliding 18.32% compared with the Sensex's 5.85% fall. The scrip had also underperformed the market in past one quarter, sliding 14.50% as against Sensex's 0.81% fall.

The mid-cap company has an equity capital of Rs 128.30 crore. Face value per share is Rs 2.

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Crompton Greaves said it bagged three contracts from Power Grid Corporation of India (PGCIL) for supply of seven 500 mega volt ampere (MVA) single phase 765 kilovolt (kV) auto transformers and thirty-eight 80 mega volt ampere reactive (MVAR) and 110 MVAR single phase 765 kV reactors, valued at Rs 231.70 crore for its Thiruvelum, Kurnool, Raipur and Wardha substations.

The scope of the contracts includes design, manufacturing, factory testing, dispatch, erection, site testing, commissioning and related civil construction, at various locations in India. The products will be manufactured at Crompton Greaves' Bhopal plant and the projects are expected to be completed within 31 months, the company said in a statement.

Crompton Greaves' board will meet on Friday, 28 June 2013, to consider share buyback proposal.

Market regulator Securities & Exchange Board of India (Sebi) on Tuesday, 25 June 2013, approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process.

Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added.

Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added.

Crompton Greaves' consolidated net profit declined 74.8% to Rs 25.27 crore on 10.1% growth in net sales to Rs 3387.30 crore in Q4 March 2013 over Q4 March 2012.

Crompton Greaves (CG) is a global pioneering leader in the management and application of electrical energy. With more than 15,000 employees across its operations in around 85 countries, CG provides electrical products, systems and services for utilities, power generation, industries, and consumers. The company is organized into four business groups: Power, Industrial, Automation and Consumer. CG clocks $ 2.3 billion in revenues from product lines that cover the entire value chain of engineering offerings.

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First Published: Jun 27 2013 | 10:28 AM IST

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