"The Volvo Group has sold its remaining holding in the listed Indian automotive manufacturer, Eicher Motors Limited. The sale corresponds to 10,05,610 shares with a total value of approximately SEK 2.2 billion (about Rs 1,695 crore)," Volvo said in a statement.
The divestment of shares has no effect on ownership or development of the long-standing joint venture
Note
Eicher Motors was trading at Rs 17,200 in the afternoon trade, down 5.55 percent.
Earlier in March, Volvo sold around 4.7 % stake in Eicher Motors for over Rs 1,920 crore by selling 12.7 lakh shares
In May 2008, Volvo and Eicher Motors Limited (EML) had got into a joint venture agreement to create VECV with an intent to drive modernisation in the commercial vehicle space in India and the developing world.
As part of the transaction, in addition to acquiring 45.6 % of the shareholding of VECV, AB Volvo had also taken 22.75 lakh shares of EML representing 8.4 % of equity capital of the company.
VECV's business includes the complete range of Eicher trucks and buses, VE Powertrain, Eicher's components and engineering design services as well as the sales and distribution business of Volvo trucks within India.
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