Volvo sells residual stake in Eicher Motors for Rs1,731 crore
05 Jun 2015
Swedish commercial vehicle manufacturer Volvo AB has exited Eicher Motors by selling its remaining stake of 3.7 per cent, in a block deal worth Rs1,731 crore.
Volvo sold one million shares of Eicher Motors in a price range of Rs17,190-18,190, which is at a discount of up to 5.5 per cent compared to its closing price of Rs18,209.
Citigroup Global Markets Mauritius was the largest buyer, purchasing 2,64,818 shares, according to the stock exchange data. Citigroup, the sole book running manager to the deal bought the shares at Rs17,190 apiece.
Earlier, on 4 March, the financial services company had picked up 4,09,675 shares for Rs15,111, when Volvo had sold its 4.6 per cent stake in the company (See: Volvo divests 4.7% stake in Eicher Motors).
In 2008, Volvo had picked up an 8.4 per cent stake in Eicher for Rs157 crore.
Over 13.02 lakh shares of Eicher, which also makes the Royal Enfield range of motorcycles, changed hands on the BSE with a delivery percentage of 77.27, while that on NSE stood at over 3.31 lakh with a delivery percentage of 16.59.
There will be no change in the functioning of VE Commercial Vehicles (VECV), an equal joint venture between Volvo Group and Eicher Motors.
''All investments and business plans at VECV will continue as planned,'' Eicher said in a statement.
Shares in Eicher Motors closed 5.64 per cent lower, at Rs17,182.35, on the BSE on Thursday.
In today's trading, shares of Eicher Motors fell as much as 5.3 per cent in early morning trade. The stock was underperforming the Nifty, which was down 0.2 per cent.