Shapoorji Pallonji Subsidiary Plans To List Eureka Forbes
Forbes & Company Ltd. plans to list or sell stake in its subsidiary—Eureka Forbes Ltd.—as the company struggles to repay debts.
The board of Forbes & Company, a subsidiary of Shapoorji Pallonji and Company Pvt. Ltd., has authorised its management to evaluate a scheme of arrangement to enable eventual listing of Eureka Forbes, the company said in a statement. “The management is evaluating all options with an intention to unlock value in the hands of all the shareholders of the company,” it said, adding that these may include a listing, dilution or sale, or a combination of both.
This comes as Shapoorji Pallonji owes another subsidiary —Sterling & Wilson Solar Ltd.—Rs 2,314 crore in debt repayment. The promoter had written to Sterling & Wilson on Nov. 14, seeking a revised schedule for the repayment of this debt.
Eureka Forbes, which makes products including vacuum cleaners, air purifiers and water purifiers, is the owner of the Aquaguard brand and has an 89 percent market share in vacuum cleaners.
Shares of Forbes & Company rose as much as 12.9 percent today to Rs 1,800 per share, snapping a losing streak of three sessions. On the other hand, shares of Sterling & Wilson Solar fell 10 percent today, hitting the lower circuit, to Rs 288.55 apiece. The latter declined for the seventh consecutive trading session.
(Corrects earlier version to update name of company that owes Sterling & Wilson Solar Rs 2,314 crore.)