Varroc Engineering tumbles ~8% on announcing revised deal for lighting business

7 Oct 2022 , 12:15 PM

Varroc Engineering shares fell as much as 9% in Friday’s trading session after it announced a revised sale for its lighting division.

The corporation said that it will now get 520 million euros, rather than the 600 million euros previously announced. However, the corporation provided no explanation for the revisions to the agreement.

In an exchange filing, the business reported changes to the securities purchase agreement signed by Varroc Engineering and its wholly-owned subsidiary VarrocCorp Holding BV Netherlands with Compagnie Plastic Omnium Se, France.

The agreement was signed on April 29, 2022, for the divestiture of the company’s automotive lighting business in America and Europe, as well as the specified R&D business in India.

Following this development, Varroc Engineering was trading 8.37% lower at Rs310.20, against previous close of Rs338.55 on NSE. So far, the counter dipped to intraday low of Rs308.

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