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Crompton Greaves jumps on proposing merger with Butterfly
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Crompton Greaves Consumer Electricals is currently trading at Rs. 295.20, up by 2.75 points or 0.94% from its previous closing of Rs. 292.45 on the BSE.
The scrip opened at Rs. 299.95 and has touched a high and low of Rs. 302.05 and Rs. 291.60 respectively. So far 61304 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 428.80 on 13-Sep-2022 and a 52 week low of Rs. 278.10 on 20-Mar-2023.
Last one week high and low of the scrip stood at Rs. 302.05 and Rs. 278.10 respectively. The current market cap of the company is Rs. 18782.82 crore.
The Institutions and Non-Institutions held 84.29% and 15.71%, stake in the company respectively.
Crompton Greaves Consumer Electricals (Crompton) and Butterfly Gandhimathi Appliances (Butterfly) have proposed scheme of amalgamation of Butterfly with Crompton (Merger). Upon Merger, the public shareholders of Butterfly as on the record date will receive 22 equity shares of Crompton for every 5 equity shares held by them in Butterfly, as a consideration for the Merger. Post-Merger, the public shareholders of Butterfly will hold around 3.0% stake in the combined entity.
The scheme is subject to the necessary statutory and regulatory approvals including approval of the stock exchanges, SEBI, the respective shareholders and creditors of each of the companies and NCLT (Mumbai and Chennai benches).
The Merger will unlock various revenue and cost synergies, achieve economies of scale by pooling the combined resources and provide an impetus to grow across all parts of India. The combined entity is expected to benefit from pooling of human capital that has diverse skills, talent, and vast experience to compete in an increasingly competitive industry. Additionally, it will enable more efficient allocation of capital and result in simplification of the corporate structure.
Crompton Greaves Consumer Electricals manufactures and markets a wide spectrum of consumer products ranging from fans, light sources and luminaires, pumps and household appliances, such as geysers, mixer grinders, toasters and irons.
