Eicher Motors fell 0.49% to Rs 16,782.90 at 9:25 IST on BSE after the company said that Royal Enfield acquired UK-based Harris Performance Products.
The announcement was made after market hours yesterday, 11 May 2015.
Meanwhile, the BSE Sensex was down 276.57 points, or 1.01%, to 27,230.73.
On BSE, so far 1,820 shares were traded in the counter, compared with an average volume of 30,171 shares in the past one quarter.
The stock hit a high of Rs 17,039.95 and a low of Rs 16,800 so far during the day. The stock hit a record high of Rs 17,200 on 19 February 2015. The stock hit a 52-week low of Rs 6,230.10 on 15 May 2014.
The stock had outperformed the market over the past one month till 11 May 2015, rising 4.07% compared with 4.75% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 4.53% as against Sensex's 3.60% fall.
The large-cap company has an equity capital of Rs 27.11 crore. Face value per share is Rs 10.
Eicher Motors said Royal Enfield, the world's fastest growing motorcycle manufacturer, has acquired UK-based Harris Performance Products. Financial details were not disclosed.
Established over forty years ago by brothers Steve and Lester Harris and Stephen Bayford, Harris Performance is one of the leading experts in designing and manufacturing of specialised high performance motorcycle chassis and components. Under the terms of the deal, Royal Enfield will acquire all assets, employees, trade names, technical know-how and intellectual property of Harris Performance Products, the company said in a statement.
Harris Performance has had a long standing relationship with Royal Enfield and was responsible for the chassis development of the brand's iconic Continental GT cafracer model.
Alongside successful relationships with the Royal Enfield brand, Harris Performance has been the only manufacturer from UK to have been officially commissioned by Yamaha and Suzuki to design, develop and manufacture race bikes for Grand Prix and World Superbike.
Royal Enfield, a division of Eicher Motors, has created the mid-size motorcycle segment in India with its unique and distinctive modern classic motorcycles. With 50% growth every year for the last 5 years, Royal Enfield is fast becoming a very important player in the global mid-size motorcycle market.
On a consolidated basis, net profit of Eicher Motors rose 40.37% to Rs 195.28 crore on 33.32% rise in net sales to Rs 2532.97 crore in Q1 March 2015 over Q1 March 2014.
Eicher Motors (EML) is the flagship company of the Eicher Group, which was a catalyst in the green revolution in India with the production of India's first agricultural tractor in 1959. EML is now a leading player in the Indian automotive space. Its joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets. Eicher Motors also owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India.
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