Lunolux Sells 10% Stake in Eureka Forbes for Rs 979 Crore

In a significant transaction, Lunolux Ltd, the promoter of Eureka Forbes, divested a 10% stake in the home appliances company through an open market transaction. The sale, which took place on Thursday, February 22, 2023, fetched Lunolux a total of ₹979 crore.

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Prominent Buyers

Several notable entities participated as buyers in the acquisition of Eureka Forbes shares. Among them were Aditya Birla Sun Life Insurance, Plutus Wealth Management LLP, Goldman Sachs, Morgan Stanley Asia Singapore Pte, Societe Generale, Cassini Partners LP, Bofa Securities Europe SA, and Hill Fort India Fund LP.

Transaction Details

According to bulk deal data available with the Bombay Stock Exchange (BSE), Lunolux Ltd offloaded 1,93,47,924 shares of Eureka Forbes, representing a 10% stake in the company. The shares were sold at an average price of ₹506.06 per share, resulting in a transaction size of ₹979.12 crore.

Lunolux's Shareholding

Lunolux Ltd, an affiliate of the US-based private equity firm Advent International, held a 72.56% stake in Eureka Forbes as of December 2023. This divestment marks a significant reduction in Lunolux's shareholding in the company.

Eureka Forbes' Performance

Despite the stake sale, Eureka Forbes has been demonstrating positive financial performance. On February 14, 2023, the company reported a three-fold increase in its consolidated net profit for the December quarter of FY24, reaching ₹22.97 crore. This growth was attributed to volume gains and improved margins.

Recent Acquisition

In September 2021, Advent International acquired a majority stake in Eureka Forbes from the Shapoorji Pallonji Group for ₹4,400 crore. This acquisition marked a significant milestone in the company's history.

RBL Bank Stake Purchase

In a separate bulk deal on the National Stock Exchange (NSE), Mathew Cyriac, the Co-founder and Chairman designate of Mumbai-based alternative asset manager Florintree Advisors, acquired shares of private sector lender RBL Bank for ₹87 crore through an open market transaction.

The divestment of a 10% stake in Eureka Forbes by Lunolux Ltd highlights the dynamic nature of the Indian business landscape. While Lunolux reduces its shareholding, the company's strong performance and recent acquisition by Advent International indicate its continued growth potential. Additionally, the acquisition of RBL Bank shares by Mathew Cyriac underscores the interest in the banking sector.