Eicher Motors Limited has announced the opening of its trading window for insiders effective May 25, 2026. The disclosure was made to BSE Limited and the National Stock Exchange of India Ltd in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

The company stated that the trading window will remain open until further communication is issued regarding the matter. This move aligns with Eicher Motors Limited’s Code of Conduct for Regulating, Monitoring and Reporting Trading by an Insider, as mandated by the SEBI (Prohibition of Insider Trading) Regulations, 2015, including its amendments.

The intimation was formally signed by Atul Sharma, Company Secretary of Eicher Motors Limited. The communication was addressed to the secretaries of both major stock exchanges to ensure the information is placed on record.

Key Details

The opening of the trading window allows designated insiders to trade in the company's securities, subject to the provisions of the code of conduct.

Eicher Motors Limited has approved an investment of up to Rs 750 crore to acquire a 50% equity stake in Volvo Financial Services (India) Private Limited. The transaction forms a 50:50 joint venture with the Volvo Group and is subject to approval from the Reserve Bank of India (RBI). The joint venture entity is intended to function as a captive financing arm for customers of AB Volvo, its group entities, VE Commercial Vehicles Ltd, and Eicher Motors in India.

The target entity, Volvo Financial Services (India) Private Limited, was incorporated on January 13, 2015. It operates as a Middle Layer Non-Deposit taking Non-Banking Financial Company (NBFC) registered with the RBI. As of March 31, 2026, the entity reported a paid-up equity share capital of Rs 514.4 crore. For the fiscal year 2025-26, the company recorded a turnover of Rs 174.98 crore and assets under management (AUM) of Rs 1825 crore.

Financial Performance

The NBFC has demonstrated steady growth in its operations over the past four years. The following table details the turnover figures for the recent financial years:

Joint Venture Structure

The Joint Venture Agreement (JVA) was signed on May 21, 2026, between Eicher Motors, Volvo Business Services International AB, Volvo Financial Services Aktiebolag, and the proposed JV entity. Post-closing, Eicher Motors will subscribe to fresh equity shares against cash consideration to secure its 50% ownership. The exact investment amount and issue price per share will be determined at the time of closing.

The governance structure of the JV will feature a shared control mechanism with equal representation from both partners on the board of directors and board committees. Volvo retains the right to nominate the Chief Executive Officer, Chief Financial Officer, and Chief Risk Officer, while Eicher Motors will nominate the Managing Director and the Deputy Chief Financial Officer. The Board Chairman role will rotate between the two parties every three years.

Strategic Rationale

Eicher Motors and AB Volvo have maintained a partnership through VE Commercial Vehicles Limited for approximately 18 years. By entering the financial services sector, Eicher Motors aims to integrate financing solutions into its commercial vehicle value chain. The transaction is classified as a related party transaction because the target entity is a related party of VE Commercial Vehicles Ltd, a subsidiary of Eicher Motors. The deal was conducted on an arm's length basis.