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    Crompton Consumer to comply with shareholding norms after Butterfly Gandhimathi OFS

    Crompton Consumer to comply with shareholding norms after Butterfly Gandhimathi OFS

    Crompton Consumer to comply with shareholding norms after Butterfly Gandhimathi OFS
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    By CNBCTV18.COM IST (Published)

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    Post the OFS, Crompton's shareholding in Butterfly Gandhimathi will fall to 75 percent, which at current market price would be valued at almost Rs 2,650 crore.

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    Buy / Sell CG Consumer share

    Crompton Greaves Consumer Electricals, the promoter of Butterfly Gandhimathi Appliances, will be selling 10.7 lakh shares or 6 percent of the company's total equity through an Offer for Sale (OFS).
    The OFS is currently open for non-retail investors and will open for retail investors tomorrow, September 21.
    The floor price of Rs 1,370 per share is a discount of 8.4 percent from Butterfly Gandhimathi's closing price on Monday.
    Crompton is selling a stake in Butterfly Gandhimathi to comply with the minimum public shareholding norms, which mandate a company to have a minimum public shareholding of 25 percent at any given point in time.
    Crompton announced the acquisition of Butterfly Gandhimathi Appliances, known for its products under the "Butterfly" brand, in February this year. It acquired a 55 percent stake from the promoter group of the company and launched the mandatory open offer to acquire another 26 percent stake. The total consideration for the acquisition came up to Rs 2,076.6 crore.
    Butterfly is a leading kitchen and small domestic appliances manufacturer of mixer grinders, table-top wet grinders, LPG stoves, non-stick cookware, and pressure cookers. It is among the top three pan-India kitchen and small domestic appliances players.
    The acquisition, which was completed recently, has started adding to Crompton's overall growth strategy, according to its CFO, Kaleeswaran Arunachalam. “There is a lot to do in terms of integrating both these businesses and ensuring that the value unlocks that we were expecting gets executed on the ground,” he told CNBC TV-18 in an interview last week.
    Since the acquisition was announced in February last year, shares of Crompton Greaves Consumer are up only 5 percent, while those of Butterfly Gandhimathi have gained more than 150 percent.
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