Lloyd Electric shares tank 17% after Havells deal

Shares of Lloyd Electric & Engineering plunged nearly 17 per cent today after Havells said it will acquire the consumer durables business of the firm for about Rs 1,600 crore.
The stock ended the day with a sharp loss of 16.75 per cent at Rs 272.95 on BSE. During the day, it tumbled 19.99 per cent to Rs 262.30.
At NSE, shares of the company tanked 16.59 per cent to close at Rs 273.20.
The company's market valuation fell by Rs 221.13 crore to Rs 1,100.87 crore.
On the volume front, 15.57 lakh shares of the company were traded on BSE and over 77 lakh shares changed hands at NSE during the day.

Havells's scrip also ended the day with a loss of 2.66 per cent at Rs 414.55 on BSE.

"...(Havells')board has approved the acquisition of Lloyd Consumer Durable Business Division (Lloyd Consumer). The acquisition is proposed to be executed at an enterprise value of Rs 1,600 crore on a debt free, cash free basis subject to closing adjustments," the company said in a statement yesterday.
The acquisition, when completed, will mark Havells' foray into the fast growing consumer durables industry.
The transaction is subject to confirmatory due diligence and is expected to close in the next 8 weeks. The company plans to finance the transaction through a mix of debt and internal accruals, the statement said.