Eureka Forbes is put on the block yet again

The Shapoorji Pallonji (SP) Group has restarted the sale technique of dwelling hygiene merchandise maker Eureka Forbes Ltd, two individuals conscious of the event mentioned.

The cash-strapped group has begun talks with potential patrons, together with personal fairness funds and a well known client home equipment firm, the individuals cited above mentioned on situation of anonymity. The SP Group initiated talks to promote the corporate widespread for its vacuum cleaners and water purifiers final yr however had suspended the method mid-way.

“Eureka Forbes is one of the best-known consumer brands in India, and the SP Group was evaluating other structures to monetise the asset without divesting ownership,” mentioned one of many two individuals cited above. “As part of this, they were engaged with a large Canadian fund to raise debt by pledging the cash flows of Eureka Forbes as collateral,” this individual added.

“The transaction (with the Canadian fund) was part of SP Group’s plans to pledge part of its stake in Tata Sons Ltd to raise debt,” mentioned the second individual. “But with the deal running into trouble after Tata Sons objected to the transaction and the matter sub judice, the SP Group has decided to exit Eureka Forbes altogether and is seeking an enterprise valuation of around ₹7,000 crore”. The firm didn’t reply to a request for remark.

A subsidiary of SP Group firm Forbes and Co. Ltd, Eureka Forbes has an annual gross sales of near ₹3,000 crore. Its product portfolio consists of water purification, vacuum cleansing, air purification and residential safety options. The firm says it has 20 million clients, reaching over 1,500 cities and cities in India, and 53 nations.

The Shapoorji Pallonji Group has been underneath appreciable monetary pressure for some time. In September, it missed a deadline to repay dues to group firm Sterling and Wilson Solar Ltd, elevating doubts concerning the group’s means to service its debt amid a faltering fundraising plan.