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Eveready Ind soars 10% after Delhi HC permits sale of Hyderabad property

In September, the Calcutta High Court had restrained the company from transferring, alienating or encumbering any of its assets till the application filed by IL&FS was disposed of.

SI Reporter  |  New Delhi 

McLeod and Eveready had made a prayer for a stay on the order
McLeod and Eveready had made a prayer for a stay on the order

Shares of India soared 10 per cent to Rs 59.3 on the BSE on Thurasday after the company said that the Delhi High Court has vacated the ad‐interim order of injunction in the IL&FS case, and has allowed to go ahead with the sale of the property at Hyderabad.

"In reference to a matter filed against some of the promoters of the company, with regard to certain alleged dues, the HC had passed an ad‐interim ex‐parte order of injunction by which, inter alia, the company had been restrained 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... However, in a hearing on December 24, the High Court has vacated the said ad‐interim order of injunction, and has allowed to go ahead with the sale of the property at Hyderabad in terms of the Agreement for Sale dated August 30, 2019," the company said in an exchange filing on December 25. READ STATEMENT HERE

In September, the Calcutta High Court had restrained the company from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed of. According to IL&FS, it had granted loan facilities of Rs 170 crore to the group through Williamson Magor & Co Ltd, which has not been repaid.

In the course of hearing an appeal from IL&FS against Williamson Magor & Co, both, and McLeod Russel -- part of BM Khaitan Group -- had contested that they aren't party to the case. Eveready has been selling its vacant land parcels to pare its Rs 500 crore debt and sources said the firm is scouting for a strategic buyer for its battery business. Both these measures were being impacted by the earlier injunction.

At 10:42 AM, the stock was trading 5.65 per cent higher at Rs 57 apiece, as against a 0.07 per cent decline in the benchmark S&P BSE Sensex. Closet to 1.7 million shares have changed hands so far on the NSE and BSE. Meanwhile, shares of McLeod Russel, too, were locked in the 5 per cent upper circuit band of 4.27 per share.

First Published: Thu, December 26 2019. 11:00 IST
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