Shares of Eveready Industries
hit an over five-year low of Rs 57, down 5 per cent on the BSE on Monday after the company announced that Calcutta High Court has restrained from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed of. The High Court Order is likely to delay the company’s plan to sell its battery business to pare debt.
The stock has been locked in lower circuit for the fifth straight trading days. It was trading at its lowest level since May 27, 2014.
“The Hon’ble High Court of Calcutta, in reference to a matter filed against some of the promoters of the Company, with regard to certain alleged dues, has passed an ad-interim order of injunction by which, inter alia, the Company (on the alleged grounds of being part of the Williamson Magor group) has been restrained from transferring, alienating or encumbering any of its assets till the disposal of the said application,” Eveready Industries
said in a BSE filing on Sunday.
The matter is currently sub judice and the Company is in the process of taking appropriate action against the said order based on advice from its legal counsel, it added.
, Eveready initiated discussion early this year with some companies, including Energizer and Duracell, to sell its battery business to pare debt. Though Eveready informed the stock exchanges last week that no definitive decision had been taken, Duracell is believed to have emerged as the frontrunner and an offer of Rs 1,600-1,700 crore is under discussion.
In past eight months, Eveready Industries' stock has tanked 75 per cent from level of Rs 224, as compared to 3 per cent rise in the S&P BSE Sensex.
Till 12:21 pm, a combined 326,361 shares changed hands on the BSE and NSE. There were pending sell orders for 185,904 shares on both the exchanges.