If on Friday, Havells and Lloyd Electric were the big gainers on the back of the sale of consumer durables unit of the latter to the former, today, once that news is confirmed and all details of the deal have emerged, both the stocks are in the red.
Lloyd Electric is down in the red, losing over 15% to Rs.278 and Havells is amongst the top three losers on the bourses, down 2.6% at Rs.415.
Apart from profit booking on both the counters, in Lloyd Electric, the punters are worried that after selling off its mulch cow, consumer durables vertical, it will be left with nothing much to talk about.
Havells confirmed that it is acquiring the unit at Rs.1600 crore on a debt free , cash free basis. The market always reacts positively on such acquisitions, as logical step ahead to expand but once the deal is done, it looks at the debt which could pile up and how initially for a couple of quarters, the margins could get affected.