Lloyd's fall 15% as investors rue sale to Havells

Shares of Lloyd Electric & Engineering on Monday dropped 17% after the company sold its consumer durable business to Havells India for Rs 1,600 crore.

The shares of the company closed at Rs 272.95 per piece, down 16.75% or Rs 54.90 on BSE on Monday. 

On Sunday, Havells said, "...Board has approved the purchase of Consumer Durables Business of Lloyd Electric and Engineering Limited on a going concern basis, subject to due diligence and other regulatory approvals."

Shares of Havells India closed at Rs 414.55 apiece, down 2.66% or Rs 11.35 on BSE. 

In a release, Havells said, "It  will  acquire  the  consumer  business  infrastructure,  people,  distribution  network  including and  not  limited  to  absolute,  exclusive  ownership  and  right  to  all intellectual property of Brand Lloyd, logo, trademark, goodwill and attendant rights."

Standard Chartered Bank was the financial advisor and AZB & Partners were the legal advisors to the transaction. EY represented sellers as their financial advisor, the company said. 

The transaction is subject to confirmatory due diligence and is expected to close in next 8 weeks. The company plans to finance the transaction through a mix of debt and internal accruals.