Crompton Greaves' shares jump nearly 9% on overseas business sale plan

Shares of Crompton Greaves surged nearly 9% on Wednesday as the company said it will sell its transmission and distribution (T&D) business outside India to a US private equity fund, First Reserve International.

The stock after a positive opening further jumped 8.7% to Rs 151.80 on BSE.

On NSE, it rose sharply by 8.89% to Rs 151.85.

"The company has now received and accepted a revised binding letter of offer for acquisition of aforesaid business by First Reserve International Ltd, a US private equity fund, for an enterprise value of euro 115 million," Crompton Greaves said in a BSE filing. 

Crompton Greaves said the transaction is subject to regulatory approval and signing of the definitive share purchase agreement.

It further said, "The sale will enable the company to reduce debt and focus on its faster growing Indian business.

The company continues to actively examine its other international B2B businesses (business to business) with a view to monetise."