Crompton Greaves’ share price slumped over 13% to hit a 52-week low of ₹252.35 on Tuesday.
What Happened: The slump today comes as the consumer electricals company on Monday evening announced that the CEO Mathew Job has resigned from his position. Job, who has been in the company for seven and a half years is moving on to pursue other career prospects.
Promeet Ghosh will be taking over from Job and will assume charge as the company's new Managing Director & CEO effective May 1, 2023. Ghosh has been appointed for a five-year tenure. The company’s current MD Shantanu Khosla has been elevated to the Executive Vice Chairman post.
Commenting on the appointment of Ghosh, Khosla said that “With Ghosh as Managing Director, the Company is well-positioned to achieve greater success in the coming years.”
ICICI Direct in a note on the management shuffle said that under Job’s leadership, the company market capitalisation grew from ₹5,000 crore to ₹18,664 crore. The firm added that “going forward, any material changes in growth outlook and improvement in margin guidance by the new management will be key monitorable for the company.”
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The company had just last month announced a merger with Butterfly Gandhimathi Appliances Ltd. Butterfly is a kitchen and small domestic appliances maker with a strong presence in South India.
Price Action: Crompton’s share price was 11.64% to trade at ₹260 in the late hours of trading on Tuesday.
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