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[Sumans_Fan]

Eicher Motors and Volvo will be setting up a separate company for their commercial vehicles business. The company is valued at over USD 760 million. Volvo will be pumping in USD 350 million in the JV

[Lavanay]

80% of Eichers's income comes on the commercial vehicle business and they have transferred it to the JV, giving it a huge holding company discount. Also the deal was done at lower price than what market was expecting.

In the short-term, it will consolidate.

[dudette]

Patel Integrated Logistics Ltd (PILL) has announced that the Company has entered into an exclusive MOU with Eicher Motors Ltd., to initially purchase 225 trucks for a consideration of about Rs 20.00 Cr. for various types of vehicles ranging from 3.00 Tonners to 16.00 Tonners. PILL will also be additionally acquiring & strengthening its own Fleet in line with its Vendor Acquisition Strategy in India.

The MOU also entails acquisition of additional trucks for its 126 vendors who supply about 756 vehicles, which is exclusively deployed for PILL's requirements. PILL will have an understanding with its Vendors to only use mainly Eicher Trucks for all its new routes, which is being contemplated & implemented.

Mr. A Ramasubramanian, CEO of Eicher Motors, has conveyed that - Eicher is ready to be a partner as preferred vehicle suppliers to Patel Integrated Logistics Limited on its major expansions, futuristic vision and being partnering for their transportation needs. He also mentioned, more than providing vehicles, Eicher will give holistic Logistical solutions and Services for PILL'S fleet. This association with Patel as major partner to cater their transportation requirements brings another mile stone on our relationship.

Eicher has bottomed out. I think, one can buy this stock now. CMP 368.75  Target 500 in 12 months

[Lavanay]

Eicher Motors (EML), one of the leading commercial vehicle makers, zoomed 20% on Monday after Eicher Goodearth Investment, the promoter and principal shareholder of EML, proposes to EML board to consider buy back of shares from its public shareholders in the same proportion as sale of promoter holding to Volvo at the price of Rs 691.66 a share, subject to the successful closing of agreements and obtaining an exemption and clarification from SEBI.

 If approved, this would result in buyback of 1,408,969 shares from the public share holders, equivalent to about 13.12% of the public holding in EML.