Eveready Inds lights up after Delhi HC OKs sale of property

Eveready Industries India surged 6.67% to Rs 57.55 after Delhi High Court allowed the company to go ahead with the sale of its property in Hyderabad.

The Delhi High Court had passed an ad-interim ex-parte order of injunction which restrained the company from selling, transferring, alienating, disposing, assigning, dealing, encumbering or creating third party rights on any of its assets, and carrying out any change in its capital structure, or any corporate or debt restructuring till the date of the next hearing in the matter.

The said matter was heard on 24 December 2019. However, the hearing could not be completed and the interim order of injunction continues till the date of the next hearing in the matter. In the meantime, the High Court of Delhi, has been pleased to vacate the said ad-interim order of injunction to the extent that the company has been allowed to go ahead with the sale of the property at Hyderabad in terms of the agreement for sale dated 30 August 2019.

In August 2019, Eveready Industries concluded an agreement with Nuland Technologies, for sale of its land in Hyderabad for a consideration of Rs 100 crore. Production in this battery manufacturing factory at Moula Ali Industrial Development Area in Hyderabad had stopped in 2010 owing to economic unviability.

Later in September, the Calcutta High Court passed an ad-interim order of injunction restraining Williamson Magor Group companies including Eveready Industries, McLeod Russel and Williamson Magor & Co from transferring, alienating or encumbering any of their assets till the application filed by Infrastructure Leasing and Financial Services (IL&FS) was disposed off.

IL&FS, which had given a term loan of Rs 170 crore to Williamson Magor Group, had filed a case for non-payment of dues.

Eveready Industries clarified in September that the court order against the company was not legally tenable as it is neither a party to any agreement or arrangement with the petitioner, in respect of the said alleged dues nor does any claim pertaining to the said dues arise from the company.

The stock witnessed an unusual movement in volume. On the BSE, 9.92 lakh shares were traded in the counter as compared with average daily volumes of 5098 shares in the past two weeks.

Eveready Industries India's consolidated net profit tumbled 62.3% to Rs 6.91 crore on 13.6% decline in net sales to Rs 331.24 crore in Q1 June 2019 compared with Q1 June 2018.

Eveready Industries India is engaged in the business of marketing of fast moving consumer goods (FMCG), such as dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. The firm also distributes a range of electrical products.

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