Promoters of Eicher Motors (EML) sold 4.2% of their holding on Friday for Rs 2,100 crore. With the stake sale, the promoter holding in the company comes down to 50.67%.
According to a BSE filing, part of the promoter group — Anita Lal, Rukmani Joshi and Eicher Goodearth — together sold 11.4 lakh shares of EML, representing 4.2% of the outstanding equity.
The sale of equity was done mainly to provide liquidity to the promoters, and the proceeds will be used for personal uses such as portfolio & other investments and charitable purposes, said the filing.
The shares were offloaded on the NSE through block deals. Reacting to increased supply, shares of the auto makers fell as much as 7% intraday. The scrip closed at Rs 18,992.80, down 3.9%.
As the combined volume on the BSE and the NSE rose to 23 times more than the daily average volume, the stock was the highest traded one on Friday in terms of turnover.
The stock of Eicher Motors has had a dream run on the bourses in the last two fiscals. After more than doubling in FY15, shares of the automaker posted 20% return in FY16. The company also reported similar progress in the market share in the premium segment (above 150 cc) motorcycles as it clocked a growth of 22% during the same period.
Not surprisingly, in the last two financial years, the market cap of Eicher Motors swelled by Rs 35,874 crore to Rs 51,986 crore, which is in fact more than the combined market value addition witnessed by Hero MotoCorp and Bajaj Auto.