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Jayanta Mallick

KOLKATA, March 26

THE Crompton Greaves stock today moved up on major bourses reportedly on active buying by one of the stakeholders. The counter saw two block deals involving a total of one-lakh shares (representing around 0.19 per cent of the paid-up capital of the company) on the BSE. The deals were struck at Rs 55.95. The identity of the new buyer, however, could not be ascertained immediately.

The stock, after touching the day's high at Rs 56.35 during the mid-session, closed lower at Rs 54.30 (Rs 54.90) for lack of follow through. Its 52-week high on the BSE is Rs 64. On the NSE, the stock closed at Rs 54.80, marginally up from yesterday's closing of Rs 54.75. The traded quantity on the BSE was 1.27 lakh shares (33,995 shares) and on the NSE 33,050 shares.

It may be mentioned that the stock has been seeing continuous change in holding pattern among the stakeholders for over a year or so.

Crompton Greaves Ltd informed the stock exchanges on March 17 that Zurich Trustee Company (India) Pvt Ltd acquired 6.29 per cent in the company for Zurich India Equity Fund (4.20 per cent), India Prudence Fund (1.33 per cent), Zurich India Tax Savings Scheme (0.57 per cent) and Zurich India Top 200 Fund (0.19 per cent). The acquisition was done through market purchases in February and early March this year.

Later, this month HDFC Mutual Fund acquired Zurich Trustee, the asset management company of the Zurich mutual fund schemes.

As on December 31, 2002, Greaves Ltd held 26.73 per cent stake in Crompton Greaves. But in January this year, Solaris Chemtech Ltd, (formerly Bilt Chemicals Ltd), a BM Thapar group constituent, acquired 1.91 per cent stake in Crompton Greaves from Greaves Ltd. By virtue of this acquisition, Solaris Chem's stake in Crompton Greaves went up to 6.68 per cent from the December 31 holding of 4.77 per cent.

According Mr Ketan Thacker, an analyst with moneypore.com, the sentiment in the counter is generally positive because of the proposed power sector reforms. "However, the counter has been relatively dormant over the last five days, with volumes averaging less than 21,000 shares on the BSE against a 20-day moving average of over 1.57 lakh shares," he added.

He pointed out that rating agency Fitch India has recently retained its rating of highest credit quality of F1 for the company's Rs 30 crore commercial paper.

The company is one of the largest players in the country in the electrical equipment and engineering industry. At current market price, the stock is trading at 7.9 times its nine-month's annualised earnings per share of Rs 9.10. The company's financial restructuring drive to reduce debt is likely to pay dividend, market players expected.

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