Varroc Engineering tanks 9% after amending lighting business deal

New Delhi: Shares of Varroc Engineering plunged as much as 9 per cent in Friday’s trade after the company announced a revised deal for their lighting business.

The company said that it would now receive520 million euros which is less than 600 million euros announced earlier. However, the company did not cite any reasons for the amendments to the deal.

The company, in an exchange filing, announced amendments in the securities purchase agreement executed by Varroc Engineering, along with its wholly-owned Subsidiary VarrocCorp Holding BV Netherlands, with Compagnie Plastic Omnium Se, France


Following the announcement, shares of Varroc Engineering plunged 9 per cent to Rs 308 on Friday, before recovering to Rs 311 at 10:10 am. The scrip had settled at Rs 338 on Thursday.

The deal was executed on April 29, 2022, for the divestment of the automotive lighting business of the company in America and Europe and identified R&D business in India.

Also, Varroc Engineering has entered into an out-of-court settlement with Valeo Vision towards IPR infringement litigation