Eureka Forbes Promoter To Divest 12% Stake, Lunolux Initiates Share Sale At Rs 494.75/Share

The promoter of Eureka Forbes Ltd has announced plans to divest up to 12% stake in the renowned company, aiming to raise a substantial Rs 1,148.7 crore. Lunolux Ltd., the entity facilitating the share sale, is set to offload 2.32 crore shares of the company, encompassing the popular Aquaguard water purifiers and Forbes vacuum cleaners.

According to details outlined in the term sheet accessed by NDTV Profit, the share sale will be executed at a floor price of Rs 494.75 per share. The offer comprises a base size of 1.93 crore shares, equivalent to 10% equity, and an upsize option of 38.7 lakh shares, representing an additional 2% stake.

The floor price reflects a modest 3% discount to the stock's closing value on the NSE as of the previous trading day. IIFL Securities Ltd has been exclusively appointed as the broker for this pivotal share sale.

As of December 2023, the promoter currently holds a substantial 72.56% shareholding in Eureka Forbes. The decision to divest comes on the back of hedge fund investment company India Discovery Fund Ltd. trimming its stake by 2.08% last week, bringing its ownership down to 6.82%, as disclosed in an exchange filing.

The shares of Eureka Forbes were observed trading at Rs 503 per share, experiencing a marginal 1.5% decline as of 11:50 am on the Bombay Stock Exchange (BSE). This stock has witnessed a modest upswing of just over 7% in the past year.

Market analysts are keenly observing the unfolding developments, considering the strategic significance of the divestment and its potential impact on Eureka Forbes' market dynamics. The share sale not only provides an opportunity for the promoter to unlock substantial value but also allows for a potential diversification of ownership within the company.

The floor price, set below the recent closing value, aims to attract investors and stimulate demand for the shares. IIFL Securities Ltd's role as the exclusive broker further underscores the meticulous planning behind this share sale.