BSE to Drop Crompton Greaves from Indices

Mumbai: Leading bourse BSE today said it will drop shares of Crompton Greaves (CG) from its different indices, as the proposed demerger plan of the firm's consumer products business will come into effect.

The stock exchange said the shares of the company will be dropped from 12 indices including S&P BSE 100, S&P BSE 200 and S&P BSE 500.

In S&P BSE 100, the shares of CG will be replaced by that of Marico Ltd, while in S&P BSE 200 and S&P BSE 500, shares InterGlobe Aviation will be added in place of CG.

BSE said that the changes will be effective from March 11. 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, CGCEL will apply for listing its shares on BSE and NSE.

"The demerger will achieve the objective of creation of two industry leading independent entities and unlocking shareholder value," Crompton Greaves CEO and Managing Director Laurent Demortier had said.

The Board of the company believes that such a demerger will create better growth opportunities for its two large but significantly different businesses - power, industrial and automation which is a B2B business, and the consumer products business which is B2C, according to a regulatory made by the firm.

The demerger will come into effect from March 15.

 

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