ABB India left with little after power grid unit sale, stock falls over 4%

Division accounts for 40% of firm's revenues and about half the order book

The flip side to owning a foreign company’s stock is the uncertainty around what its parent company has in store for its Indian operations. Siemens, GE T&D, and Gillette are few examples, where Indian investors are a minority as about 75 per cent of shares of such companies are held by their overseas parent. 

ABB India joined the list on Monday evening, when its Swedish parent ABB decided to sell the power grid division to Hitachi for $9.1 billion. ABB India’s stock price took a 5 per cent hit on Tuesday readjusting to value the remaining businesses.

While experts agree with ABB’s