Eicher Motors gained 1.25% to Rs 16,090.15 at 14:50 IST on BSE after the company said AB Volvo today, 4 March 2015, divested 12.7 lakh shares or approximately 4.7% of Eicher's equity capital.
The company made the announcement during market hours today, 4 March 2014.
Meanwhile, the BSE Sensex was down 216.99 points, or 0.73%, to 29,376.74.
Huge volumes was witnessed on the counter. On BSE, so far 13.69 lakh shares were traded in the counter, compared with an average volume of 4,978 shares in the past one quarter.
The stock was volatile. At the day's high of Rs 16,226.05, the stock rose 2.1% and at the day's low of Rs 15,111 hit so far during the day, the stock dropped 4.91%. The stock hit a record high of Rs 17,200 on 19 February 2015. The stock hit a 52-week low of Rs 5,002.90 on 3 March 2014.
The stock had underperformed the market over the past one month till 3 March 2015, falling 2.63% compared with 2.05% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 4.21% as against Sensex's 4.05% rise.
The large-cap commercial vehicle maker has an equity capital of Rs 27.11 crore. Face value per share is Rs 10.
In May 2008, AB Volvo and Eicher Motors had entered into a joint venture agreement to create VE Commercial Vehicles (VECV) with the intent to drive modernisation in the commercial vehicle industry in India and the developing world. As a part of the transaction, in addition to acquiring 45.6% of the shareholding of VECE, AB Volvo had also acquired 22.75 lakh shares of Eicher Motors representing 8.4% equity capital of the company.
The divestment will have no bearing whatsoever on VECV, which will continue to be governed as an equal partnership venture. The shareholding pattern and governance framework of VECV remains unchanged. Both partners-Eicher Motors and AB Volvo are equally committed to grow the business together, Eicher Motors said.
Eicher Motors' consolidated net profit rose 59.8% to Rs 153.77 crore on 36.3% rise in total income to Rs 2308.86 crore in Q4 December 2014 over Q4 December 2013.
Powered by Capital Market - Live News
