Crompton Greaves buys out 3 units of Nelco

MUMBAI (makemystocks): Crompton Greaves Ltd. (BOM: 500093), manufacturer of products related to power generation, today said that it has acquired three business units of Tata group promoted Nelco on a slump sale basis at a cost of about Rs 92 crore.

The scrip of the company fell by 1.93 per cent from the previous close, on the Bombay Stock Exchange (BSE). The shares of the company have hit a 52-week high at Rs. 279.60 on April 15, 2010 and a 52 week low at Rs. 88.02 on April 29, 2009.

The shares of the company appreciated by 18.65 per cent in a period of six months, while in one year’s span the shares shot up to 173.6 per cent on BSE.

The three businesses comprise of Traction Electronics, supervisory control and data acquisition (SCADA) and Industrial Drives.

This acquisition will enable the company to become a stronger and more comprehensive player in the railways business segment and build capabilities in drives by better leveraging on its existing product portfolio, stated the company is a release.