Shares of Eicher Motors plunged nearly six per cent today as Swedish commercial vehicle major Volvo exited the company by selling its residual 3.7 per cent stake in the Indian firm for about Rs 1,695 crore.
After falling 7.16 per cent to Rs 16,905 in intra-day, shares of Eicher Motors finally ended at Rs 17,182.35, down 5.64 per cent on the BSE.
At the NSE, it dipped 4.83 per cent to close at Rs 17,311.75.
The company's market valuation also fell by Rs 2,724 crore to Rs 46,636.99 crore.
Eicher Motors saw correction in its share price on news of Volvo selling 3.7 per cent stake in Eicher Motors to exit its almost seven-year old investment in the company, Bonanza Portfolio Ltd Associate Fund manager Hiren Dhakan said.
"Volvo Group has sold its remaining holding in the listed Indian automotive manufacturer, Eicher Motors Ltd. The sale corresponds to 10,05,610 shares with a total value of approximately 2.2 billion Swedish Krona (about Rs 1,695 crore)," Volvo said in a statement.
In May 2008, Volvo and Eicher Motors had entered into a joint venture agreement to create VECV with an intent to drive modernisation in the commercial vehicle space in India and the developing world.
