Why Eureka Forbes' Share Price Is Tumbling Today

Shares of Eureka Forbes were in the red on Thursday after reports that its promoter was likely to sell a large chunk of its stake in the company.

What Happened: Lunolux, the promoter entity of Eureka Forbes, is poised to divest a 12% stake in the home appliances company through block deals, CNBC Awaaz reported, citing insider sources.

The promoter firm intends to sell around 2.3 crore shares, with a floor price set at ₹494.75 per share, the report disclosed. This values the overall deal at ₹1,150 crore.

See Also: Gurgaon Man Duped Of ₹4 Lakh In Cyber Scam Disguised As WFH Job

The shares will be offered at a maximum discount of 3%, the business media outlet was told by two sources.

On Wednesday, Eureka Forbes’ shares surged following reports suggesting that India Discovery Fund was considering selling a 4% stake in the company.

Through the reported block deal, Lunolux would reduce its stake in Eureka Forbes to about 60%. As of December 31, 2023, the firm, supported by private equity major Advent International, held a 72.56% stake in Eureka Forbes, as per BSE data.

Price Action: Eureka Forbes’ share price was down 1.40% at ₹502.9 near the start of trade on Thursday.

Read Next: Paytm Shares Halt Upward March As Brokerage Cuts Target Price

Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesNewsInsider TradesMarketsMoversTrading IdeasEureka Forbes