Varroc Engineering jumps on signing securities purchase agreement with Plastic Omnium of France
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Varroc Engineering is currently trading at Rs. 474.70, up by 62.50 points or 15.16% from its previous closing of Rs. 412.20 on the BSE.
The scrip opened at Rs. 425.00 and has touched a high and low of Rs. 494.60 and Rs. 425.00 respectively. So far 480409 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 494.60 on 29-April-2022 and a 52 week low of Rs. 260.20 on 14-Sep-2021.
Last one week high and low of the scrip stood at Rs. 494.60 and Rs. 390.30 respectively. The current market cap of the company is Rs. 6297.86 crore.
The promoters holding in the company stood at 75.00%, while Institutions and Non-Institutions held 18.84% and 6.16% respectively.
In a bid to transform itself into a high-tech company and focus on the existing growth of electronics, connectivity, electrical vehicles (EVs) product lines and the 2-wheeler segment globally, Varroc Engineering (VEL) has signed a Securities Purchase Agreement (SPA) with Compagnie Plastic Omnium SE of France to divest its 4-wheeler lighting systems operations in the Americas and Europe. The divestment is part of VEL’s strategy to align its resources with the high value and high growth primary markets in China, India, and the two-wheeler sector globally.
The Euro 600 million transaction will see Varroc divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco Varroc will also continue to operate its China JV and other international 2-wheeler businesses in countries like Italy and Vietnam and global electronics businesses in Poland and Romania. The company is retaining its 4-wheeler lighting operations in Asia. The planned divestment of Varroc’s 4-wheeler lighting systems businesses in the Americas and Europe will ensure enhanced shareholders’ value, sustainable growth, and further development of its R&D facilities and engineering capabilities.
Varroc Engineering is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components.
