Brokerage bullish on Crompton over Butterfly merger proposal, sees 49% upside in stock2 min read 29 Mar 2023, 03:40 PM IST
As part of the deal, the public shareholders of Butterfly as of the record date will receive 22 equity shares of Crompton for every 5 equity shares held by them in Butterfly. Post the completion of the merger, the public shareholders of Butterfly will hold a 3% stake in the combined entity.
Crompton Greaves Consumer Electricals is likely to benefit more from acquiring Butterfly Gandhimathi Appliances. The two consumer durables companies have entered into a share swap agreement where Butterfly will merge with Crompton. Brokerage expects the deal to be positive for Crompton's shareholders as the company will optimally realise the synergy benefit.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!Let’s get started
Select your Category