Crompton Greaves gains on proposal to buy Kenstar

India Infoline News Service | Mumbai | August 09, 2017 14:01 IST

Crompton Greaves Consumer Electricals has offered to pay nearly Rs 1,440 crore to buy Kenstar from Videocon Group, reported a leading business daily.

Crompton Greaves Consumer Electricals has offered to pay nearly Rs 1,440 crore to buy Kenstar from Videocon Group, reported a leading business daily.

The deal hinges on a 'sustainable sales guarantee' clause that private equity-backed Crompton Greaves Consumer wants to include in the final agreement.

This clause ensures that the sales numbers of Kenstar quoted by Videocon do not deviate drastically in the near future from what has been stated. The transaction will be a leveraged buyout, the daily added.

Kenstar, a part of the Dhoot family-controlled Videocon group makes a range of kitchen and home appliances such as air conditioners, air coolers, mixer grinders and electric kettles.

Meanwhile, the stock traded in the positive territory gaining 0.58% at Rs 216.45 per share at 1252 hours. The stock on BSE attracted a total traded quantity of 0.11 lakh.

Stock View:

Crompton Greaves Consumer Electrical Ltd is currently trading at Rs 216.7, up by Rs 1.5 or 0.7% from its previous closing of Rs 215.2 on the BSE.

The scrip opened at Rs 217 and has touched a high and low of Rs 217.85 and Rs 214.7 respectively. So far 772475(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 13487.58 crore.

The BSE group 'A' stock of face value Rs 2 has touched a 52 week high of Rs 246 on 02-Jun-2017 and a 52 week low of Rs 135.05 on 09-Nov-2016. Last one week high and low of the scrip stood at Rs 219 and Rs 211.5 respectively.

The promoters holding in the company stood at 34.38 % while Institutions and Non-Institutions held 49.96 % and 15.66 % respectively.

The stock is currently trading below its 50 DMA.
BSE 198.30 1.40 (0.71%)
NSE 198.60 2.40 (1.22%)

***Note: This is a NSE Chart

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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