Equity Alert: US co buy fails to lift Crompton Greaves shrs; dn 6%
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Equity Alert: US co buy fails to lift Crompton Greaves shrs; dn 6%
MUMBAI--1:35PM--Crompton Greaves shares were down 5.6% at 237.55
rupees on
weakness in equity market, unaffected by the acquisition announced by
the
company today.
The company is in pact to acquire U.S.-based MSE Power Systems Inc
and
two of its group companies with an aggregate enterprise value of $16
mln
(733.5 mln rupees).
Although details of MSE Power's financial performance were not
known,
analysts said the buy is more for strategic acquisition for expansion
of
Crompton Greaves' renewable energy portfolio.
The U.S.-based engineering, procurement, and construction company
is
active in renewable energy sector, particularly in wind power.
"This acquisition may not have a short-term impact on the stock.
We
maintain a 'buy' recommendation on Crompton Greaves shares with a
price
target of 367 rupees. It is a preferred stock in the sector," an
analyst from
brokerage Sharekhan said.
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