The shares of the multinational home appliances provider fell up to 4 percent after the promoter of the company sold 1.79 crore equity shares in a block deal.
With a market capitalization of Rs 9,472.30 crore, the shares of Eureka Forbes Ltd were trading at Rs 489.80 per share, decreasing around 3.97 percent as compared to the previous closing price of Rs 510.05 apiece.
As per money control, Lunolux Ltd the promoter of Eureka Forbes Ltd sold 1.79 crore equity shares which is equivalent to 9.3 percent of the company worth Rs 975 crore in a block deal. The transaction was completed at a floor price of Rs 544, representing a 6% premium over the previous closing price of Rs 510 on the NSE.
Moreover, Lunolux owned 72% of Eureka Forbes and would remain the majority stakeholder if it sold the company in the most recent block sale.
Lunolux Ltd is a special-purpose vehicle established by AI Global Investments (Cyprus) PCC Ltd to serve as Asia’s investment base for all Advent International funds.
Looking into the company’s performance, Eureka Forbes Ltd’s revenue increased by 14 percent from Rs 472 Crore in Q3FY23 to Rs 539 Crore in Q3FY24. During the same period, net profits increased by 130 percent from Rs 10 crore to Rs 23 crore.
It recorded a return on equity (ROE) of 0.69 percent and a return on capital employed (ROCE) of 1.91 percent; nevertheless, it is not producing strong returns on equity and capital employed owing to variability in revenue and net profit generation.
According to the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold 72.56 percent stake, the Domestic Institutional Investors hold 4 percent and the Foreign Institutional Investors (FII) hold 10.76 percent.
Eureka Forbes Limited (EFL), part of the Shapoorji Pallonji group, offers a range of health and hygiene products, including water purifiers, vacuum cleaners, air purifiers, and home security systems.
Written by:- Abhishek Singh
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