Forbes & Co jumps 5% as PE major Advent buys stake in Eureka Forbes

The private equity major Advent International on Sunday signed an agreement with Shapoorji Pallonji Group to acquire a majority stake in Eureka Forbes at an enterprise valuation of Rs 4,400 crore

Shares of Forbes & Company were locked in the upper circuit of 5 per cent at Rs 4,184.35, also its 52-week high on the BSE in Monday's session after the private equity (PE) major Advent International on Sunday signed an agreement with Shapoorji Pallonji Group to acquire a majority stake in Eureka Forbes at an enterprise valuation of Rs 4,400 crore.

Till 02:35 pm, around 81,000 equity shares of the company had changed hands on the counter on the BSE, as compared to an average of 18,000 shares that were traded in the past two weeks. There were pending buy orders for 29,062 shares on the BSE, the exchange data shows.

Eureka Forbes (EFL) is a market leader in the health and safety solutions space in India, with a presence in water purification, vacuum cleaning and other emerging categories. EFL has earned the trust of its customers through its long-established power brands such as Aguaguard, which is synonymous with the water purifier category, and Forbes, known for its 'Make for India' range of vacuum cleaners.

Pursuant to a scheme of the arrangement, EFL, a 100 per cent subsidiary of Forbes & Company Limited will be demerged into a standalone company and then be listed on the BSE Limited. Upon listing of EFL, Advent will purchase up to 72.56 per cent of the company's then outstanding stock on a fully diluted basis from Shapoorji Pallonji Group.  Advent will thereafter make an open offer in compliance with applicable regulations. The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.

In India, Advent has made four consumer investments, including Crompton Greaves Consumer Electricals, India's leading supplier of consumer electrical goods; Dixey Textiles, a leading men's innerwear brand; Enamor, a leading women's innerwear brand; and DFM Foods, a leading producer of packaged savoury snacks. Eureka Forbes will be Advent's fifth buy out in the consumer sector, strengthening its position as one of India's leading retail and consumer investors.