Eveready Industries India was locked in 5% lower circuit at Rs 70.50 after media reports suggested that Duracell is set to acquire the company's battery and flashlight business in a slump sale for Rs 1,600-1,700 crore.
US-based Duracell Inc. is owned by Warren Buffett's Berkshire Hathaway.
As per reports, the deal includes manufacturing plants, distribution network and the Eveready brand. The american firm will only own the Eveready brand in India and become owners of an annual installed capacity of 1.5 billion batteries and over 20 million flashlights per year.
Duracell's proposed offer excludes Eveready Industries' lighting, electrical appliances, confectionery and a fast-moving consumer goods (FMCG) joint venture that clock a cumulative turnover of Rs 500-600 crore, and the company's non-core real estate including the Kolkata office at Rainey Park, reports added.
On the BSE, 2.48 lakh shares were traded in the counter so far compared with average daily volumes of 5875 shares in the past two weeks. The stock hit a high of Rs 77.9 and a low of Rs 70.5 so far during the day.
The stock hit a 52-week high of Rs 255.95 on 10 Sep 2018. The stock hit a 52-week low of Rs 66.25 on 25 Jul 2019.
On a consolidated basis, Eveready's net profit fell 62.3% to Rs 6.91crore on a 13.6% decline in net sales to Rs 331.24 crore in Q1 June 2019 over 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.
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