Sunday, February 18, 2024
Home News Butterfly Gandhimathi slips 5% on merger with Crompton Greaves Consumer

Butterfly Gandhimathi slips 5% on merger with Crompton Greaves Consumer

 

On Monday, Butterfly Gandhimathi Appliances made the announcement that it would be merging with Crompton Greaves Consumer. As a result, the company’s shares fell 5% to Rs 1,200 during intraday trading. In the mean time, Crompton’s portions were up 1% at Rs 294.10 at 09:30, driving the S&P BSE Sensex up 0.22 percent.

Crompton Greaves will issue 22 fully paid-up shares worth Rs 2 each for every five fully paid-up shares worth Rs 10 each that Butterfly holds after the merger. Butterfly will be dissolved following the merger, and the transaction will take place as a single listed entity as a result.

After 12 to 14 months, the scheme is expected to be effective. Butterfly’s public shareholders will retain approximately 3% of the combined entity following the merger.

By pooling resources, the merger will enable a variety of revenue and cost synergies, achieve economies of scale, and propel growth throughout India.

The management of both businesses is of the opinion that the amalgamated entity will benefit from the pooling of diverse human capital with extensive experience, talent, and skills in order to compete in an industry that is becoming increasingly competitive.

He also stated that it would simplify the corporate structure and make capital allocation more effective.

Because Crompton Greaves owned 75% of Butterfly, analysts believe there were already business synergies.

“After the acquisition, Butterfly contributed approximately 21% of Crompton Greaves’ revenue. At the specified swap ratio, Crompton Greaves’ equity will decrease by 3%. It doesn’t seem like a big deal since Butterfly’s business is already a part of Crompton. Effect of merger on stock price,” said ICICI Securities analysts.

RELATED ARTICLES

Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SIGNUP & GET $10000 BONUS

Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments