Crompton Greaves Consumer gets listed

Crompton Greaves Consumer Electricals got listed on the listed on the BSE today at Rs.126.20 and has now breached the 5% upper circuit at Rs.132.50.

The company is the de-merged arm from Crompton Greaves, the consumer product vertical. In 2015, investors in this vertical had sold off their entire stake at Rs.93/share and the shareholders of Crompton Greaves had got one share of the consumer company for every share held of Crompton Greaves.

The company has a strong brand equity and the new management plans to concentrate on expanding its non-electrical business channels like e-commerce. It plans to increase spend on advertising and will be colliding head-on with the likes of Havells. 50% of the company’s revenue is outsourced and given the high import content, it remains open to vagaries of rupee-dollar volatility.

Most research and fund houses have given a buy call on the stock and have put out positive reports on the company.