Industrial and electrical equipment maker Crompton Greaves on Friday said its board has approved buyback of 10 per cent shares from the open market valued at Rs. 265.7 crore.
Board of directors have approved buyback of fully paid shares of Rs. 2 each from the open market through the stock exchanges at a price not exceeding Rs. 125 per share, up to an amount of Rs. 265.7 crore, Crompton Greaves said in a filing with the BSE.
The company has also postponed proposed amalgamation of CG-ZIV Power Automation Solutions Ltd. (a wholly-owned subsidiary) with Crompton Greaves Ltd. till buyback is completed.
Crompton Greaves had acquired ZIV in July 2012. Crompton Greaves had informed stock exchanges on April 18, 2013, about proposed amalgamation.
“Till date, no actions have been taken with respect to this amalgamation. The board has taken a decision to postpone the proposed amalgamation of CG-ZIV with the company”, company said.
“The company/CG-ZIV will not be proceeding with filing the scheme of amalgamation with the Bombay High Court, until closure of the buyback”, it added.
Shares of Crompton Greaves were trading at Rs. 87.70 on the BSE, up 9.42 per cent from its previous close.