Forbes & Company stock sinks 19% in 2 days, nears 52-week low; here's why

On Friday, March 7, 2025, NEXTPACT sold 120,273 equity shares representing 0.96 per cent stake of Forbes & Company at Rs 296.51 per share on the BSE, the bulk deal data shows.

Shares of Forbes & Company were under pressure for the second straight trading day on Monday. The stock was down 4 per cent at Rs 278.10 on the BSE in intra-day trades in an otherwise firm market. The stock was trading close to its 52-week low of Rs 276 touched on February 14, 2025. 

 

In the past two trading days, the stock price of the company slipped 19 per cent after foreign institutional investor (FPI) sold nearly 1 per cent stake in the company via open market deals.

 

On Friday, March 7, 2025, NEXTPACT sold 120,273 equity shares representing 0.96 per cent stake of Forbes & Company at price of Rs 296.51 per share on the BSE, the bulk deal data shows.  The names of the buyers were not disclosed. As of December 2024, NEXTPACT held 150,000 equity shares or 1.16 per cent stake in the company, the shareholding pattern data shows.

 

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Forbes & Company, a part of the Shapoorji Pallonji group, is mainly engaged in the business of manufacturing and trading of engineering products, real estate development projects and leasing of premises.

 

The flagship company of the group i.e. Shapoorji Pallonji and Company Private Limited (SPCPL) is one of the leading construction companies of India. The Shapoorji Pallonji group is an extensive conglomerate with business interests in several sectors such as real estate, coal mining, power, ports, roads, biofuels & agriculture, shipping & logistics, consumer products, textiles etc. Most of Shapoorji Pallonji groups’ businesses are held by SPCPL as subsidiaries.

 

The SP Group holds a 73.85 per cent equity stake in the company as on December 31, 2024, of which 98.25 per cent of the SP Group’s stake was pledged.

 

At 11:39 am; Forbes & Company was quoting 3.5 per cent lower at Rs 280.90, as compared to 0.36 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over three-fold, with 103,000 equity shares changing hands on the BSE, the exchange data shows. 

 

Currently, Forbes & Company trades under the ‘X’ group on the BSE. X group classified equity securities of companies that are only listed/traded on the BSE. The "XT" Group represents securities which are settled on a trade-to-trade basis as a surveillance measure. On March 3, 2024, the stock turned ex-date for spin off.

 

Forbes & Company demerged its precision tools business to a newly formed wholly-owned subsidiary, Forbes Precision Tools and Machine Parts Limited (FTPL) after receiving approval from the National Company Law Tribunal (NCLT). Accordingly, the entire demerger process has been completed and has been effective from April 01, 2023. Forbes & Company has restated financials for FY23 post completion of the demerger.

 

Forbes & Company’s standalone operations include the engineering business (comprising industrial automation and coding) and residential project development (Vicinia in Chandivali, Mumbai). In addition, FCL earns substantial income from its real estate holdings. It also has many subsidiaries, joint ventures (JVs), and associate companies. However, the company has undertaken various divestments and business discontinuations over the years.

 

The business profile of Forbes & Company has undergone change with demerger of EFL along with liquidation/ dissolvement of European subsidiaries demerger of the precision tool business. The revenue from the overall engineering segment has been curtailed with the demerger of the precision tools businesses thereby resulting in de-growth in business operation, according to CARE Ratings.

 

The engineering business derives majority of revenue from the automobile companies as end users. Hence the business and profitability would be susceptible to cyclicality in the auto segment and also availability/fluctuation in input prices, the rating agency had said in its rationale.