Shares of Crompton Greaves Consumer Electricals Limited surged 6.75% to ₹308.45 on the NSE on May 15, adding ₹19.50 from a previous close of ₹288.95, after CNBC-TV18 reported that the Aditya Birla Group is among multiple parties in contention to acquire a majority stake in the company. The stock was simultaneously flagged as both a top gainer and among the most active on the exchange, with average daily volume running at 5.07 million shares — indicating heavy institutional participation in the M&A-driven rally.
The price chart tells the story of a two-phase session. Crompton’s stock had already been grinding higher through the morning and afternoon — rising from an open near ₹285 to approximately ₹300 through mid-session on general market momentum — before a sharp vertical spike to ₹307.95 at approximately 2:40 PM IST coincided precisely with the CNBC-TV18 M&A report hitting the wires. The intraday range spanned ₹284 to ₹307.95.
The M&A report is the entire explanation for the afternoon spike. CNBC-TV18 cited sources indicating that the Aditya Birla Group is among multiple parties in a competitive process to acquire a majority controlling stake in Crompton Consumer. The current promoter structure — private equity firms Advent International and Temasek, who acquired controlling stakes at the time of the 2016 demerger from CG Power — has held the investment for nearly a decade, placing this process squarely in the expected PE exit window. A majority stake acquisition would trigger an open offer obligation to public shareholders under SEBI’s takeover code, which is itself a significant upside catalyst for minority investors — open offers are typically priced at a premium to market.
The M&A interest comes despite a difficult Q4FY26 for Crompton’s fundamentals. The company reported revenue from operations of ₹2,283.27 crore for Q4FY26, up 10.8% year on year and 20.3% sequentially — a solid topline performance. However, an exceptional loss of ₹716.04 crore during the quarter drove the company to a net loss before tax of ₹483.60 crore against a profit before tax of ₹230.80 crore a year ago. Net loss for Q4FY26 was ₹531.07 crore against a net profit of ₹171.74 crore in Q4FY25. The exceptional item, rather than any operational deterioration, is responsible for the reported loss — the underlying revenue trajectory of 10.8% year-on-year growth is consistent with Crompton’s medium-term performance.
At ₹308.45 and a P/E of 42.59x, Crompton’s market capitalisation stands at approximately ₹1,963 crore post-rally — making any majority stake acquisition, combined with the mandatory open offer, a transaction likely in the ₹8,000-10,000 crore range depending on valuation and stake size. The Aditya Birla Group’s interest, if confirmed, would represent one of the largest consumer durables acquisitions in India, giving the conglomerate a dominant platform in fans, pumps, lighting, and home appliances at a moment when India’s consumer electricals market is benefiting from structural tailwinds in housing, energy efficiency, and the electrification transition.
Names of other parties in the competitive process were not disclosed by CNBC-TV18. Business Upturn will update this story as the transaction details develop.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.