Eicher Motors fell 4.40% to Rs 18,880.95 at 11:12 IST on BSE after the company's promoters raised Rs 2100 crore by selling 4.2% stake in the firm.
The announcement was made during trading hours today, 13 May 2016.Meanwhile, the BSE Sensex was down 250.51 points, or 0.97%, to 25,539.71.
On BSE, so far 34,000 shares were traded in the counter, compared with an average volume of 4,837 shares in the past one quarter. The stock hit a high of Rs 19,624.15 and a low of Rs 18,826 so far during the day. The stock hit a record high of Rs 21,618.30 on 21 July 2015. The stock hit a 52-week low of Rs 14,817.75 on 19 January 2016. The stock had underperformed the market over the past one month till 12 May 2016, rising 1.13% compared with 2.56% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 9.76% as against Sensex's 12.20% rise.
The large-cap company has an equity capital of Rs 27.16 crore. Face value per share is Rs 10.
Anita Lai, Rukmani Joshi and The Eicher Goodearth Trust, part of the promoter group of Eicher Motors (EML), have sold 11.40 lakh equity shares, or 4.2% equity, in EML for Rs 2100 crore. This sale has been done to provide liquidity to the promoters. The proceeds will be utilized for personal uses such as portfolio and other investments and for charitable purposes, the statement issued by the promoters stated.
Following the sale, the promoter group will continue to hold 50.67% stake in EML. The promoters intend to maintain a majority share in EML and do not plan to sell any further shares in the foreseeable future, the statement added.
Siddhartha Lal, managing director and CEO of EML and also a part of the promoter group, said that EML is a standout success and there is a huge growth potential for EML in its domestic and overseas markets. It has the right business strategy and management team to deliver growth aspirations.
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As on 31 March 2016, The Eicher Goodearth Trust held 0.06% stake, Anita Lal held 11.13% stake and Rukmani Joshi held 1.33% stake in EML. Total promoter holding stood at 54.87% as on 31 March 2016.
Eicher Motors' consolidated net profit rose 71.29% to Rs 334.50 crore on 45.78% growth in total income to Rs 3792.98 crore in quarter ended 31 March 2016 over the quarter ended 31 March 2015. The result was announced on 5 May 2016.
Eicher Motors is the flagship company of the Eicher Group. EML is one of the leading players in the Indian automotive space. EML's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets fuel-efficient trucks and buses. It owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India.
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