Eicher Motors falls 5%, promoters sell 4.2% worth Rs 2100 cr

Shares of Eicher Motors tanked 5 percent intraday on Friday after promoters have sold stake in the company. Promoter group has sold 4.2 percent stake in the company for Rs 2100 crore. The company says that the sale has been done to provide liquidity to the promoters, and the proceeds will be utilised for personal uses, such as portfolio and other investments, and for charitable purposes.

Following the sale, the promoter group will continue to hold 50.67 percent  stake in the company. “The promoters intend to maintain a majority share in EML, and do not plan to sell any further shares in the fore-seeable future,” a company statement said.

Part of the promoter group who sold stake (1,140,846 equity shares) are Anita Lal, Rukmani Joshi and The Eicher Goodearth Trust.

Siddhartha Lal, Managing Director and CEO of the company said “EML is a standout success and we are immensely proud of our company's journey so far. We believe there is a huge growth potential for EML in its domestic and overseas markets. We have the right business strategy and management team to deliver our growth aspirations. I am excited to continue to steer EML’s next phase of growth.”Meanwhile, consistent rise in Royal Enfield sales and a recovery in commercial vehicles segment boosted strong operational performance of Eicher Motors in January-March quarter.A 60 percent jump in Royal Enfield sales in the January-March quarter saw its margins hit a record high of of 29.8 percent in the period. Eicher Motors’ net profit rose by a whopping 71.3 percent at Rs 334.5 crore in January-March from Rs 195.3 crore in corresponding quarter last fiscal.At 11:13 hrs Eicher Motors was quoting at Rs 18,888.75, down Rs 860.80, or 4.36 percent on the BSE.Posted by Nasrin SultanaFollow @NasrinzStory