Crompton Greaves Consumer Electricals (CGCEL), through offer for sales, plans to reduce its stake in Butterfly Gandhimathi to 75% from the current 81%. The floor price is Rs 1370/share (~8% discount to its closing price on September 19, 2022).
CGCEL acquired 81% stake in Butterfly in FY22. The current offer for sales has been undertaken primarily to achieve the minimum public shareholding in the company as per Sebi guidelines. Post OFS, CGCEL's stake will reduce to 75%. We believe this confirms that 'Butterfly' will remain a listed entity. The OFS does not materially change the consolidated earnings for CGCEL.
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