homemarket Newsstocks NewsSale of bleeding lighting business powers Varroc Engineering stock to 52 week high
Sale of bleeding lighting business powers Varroc Engineering stock to 52-week high
Varroc Engineering has sold its four-wheeler lighting business in the US and Europe to Compagnie Plastic Omnium SE, France, for about Rs 43.32 billion.
The share price of Varroc Engineering, electronic component manufacturing company, touched a 52-week high of Rs 494.60 on Friday, after the company decided to divest its loss making global lighting business.
The company has sold its four-wheeler lighting business in the US and Europe to Compagnie Plastic Omnium SE, France, for about Rs 43.32 billion.
"Varroc, along with its wholly-owned subsidiary VarrocCorp Holding BV Netherlands, has entered into an agreement with Compagnie Plastic Omnium Se, France for the divestment," the company said in its release.
At 10:42 am, the stock was trading 13.54 percent higher at Rs 468 per share on the BSE. Around 10:00 am, the company had pending buy orders of 325,879 shares, with no sellers.
Source: BSEThe lighting business has been making losses for last many quarters for the company. In Q3FY22, the global lighting business had reported an EBITDA loss of Rs 39 crore.
The decision to sell the lighting business could make the firm debt free. "On the first look, the transaction seems to be positive for the company," said Amit Hiranandani, lead analyst, SMIFS Institutional Research.
The company will now align all resources towards electronics, connectivity, EV product lines and the two-wheeler segment globally with primary focus on high growth markets like India and China.
The company is also retaining its four-wheeler lighting operations in Asia.
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First Published: Apr 29, 2022 11:38 AM IST
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