Shares of engineering major Crompton Greaves today plunged over 18 per cent amid the demerger of the firm's consumer products business.
The stock opened at Rs 53.70 and finally ended at Rs 43.90, down 18.24 per cent from the opening price on BSE. While taking the pre-demerger closing price into account, the stock lost 71.67 per cent.
The scrip had closed at Rs 155 (pre-demerger) yesterday.
Crompton Greaves last month informed BSE that its Board at its meeting held on February 25, 2016, fixed March 16 as the record date for the purpose of reckoning names of the equity shareholders of the company entitled to receive shares of Crompton Greaves Consumer Electrical Limited - the resulting company, pursuant to the scheme of demerger.
Last year, Crompton Greaves' Board approved demerger of its consumer products business into a separate listed company, Crompton Greaves Consumer Electricals Ltd (CGCEL).
The company had said that CGCEL will apply for listing its shares on BSE and NSE.
Last week, Crompton Greaves had also announced to sell its transmission and distribution (T&D) business outside India to a US private equity (PE) fund, First Reserve International, for an enterprise value of euro 115 million (about Rs 851 crore).
The company had said that the sale will enable it to reduce debt and focus on growing its India business.
