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Advent buys Eureka Forbes for ₹4,400cr

September 20, 2021

Advent buys Eureka Forbes for ₹4,400cr

American buyout firm Advent International has agreed to buy a majority stake in Eureka Forbes Ltd, the consumer durable flagship of Shapoorji Pallonji Group and a household name in the vacuum cleaner and water purifier segments, for ₹4,400 crores.

Eureka Forbes Ltd, a unit of Forbes and Co. Ltd will be separated from the parent and listed on BSE, the two organizations said in a joint statement on Sunday.

“After posting of Eureka Forbes, Advent will buy up to 72.56% of the organization’s then exceptional stock on a fully diluted basis from Shapoorji Pallonji Group. Advent will from there on make an open offer in compliance with applicable regulations,” the statement said.

The transaction will help Shapoorji Pallonji Group pare its debt and focus on different organizations. Of the gathering’s all-out obligation of ₹20,000 crores, ₹10,900 crore is under a one-time restructuring package under the Covid-19 relief framework regulations of the Reserve Bank of India, allowing the 150-year-old conglomerate easier payment terms to clear the dues.

The SP group had proposed to raise ₹10,332 crores through the monetization of these assets. It is likewise attempting to sell other group companies, including Sterling and Wilson Solar, one of the biggest solar EPC (engineering, acquisition, and development) solution providers, and Afcons Infrastructure, a construction and engineering company.

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