The Eicher Motors' stock fell 5.72 per cent to Rs 17168.80 at 12.27 pm. After closing at Rs 18,209.75 on Wednesday, the auto firm's shares touched a low of Rs 16905.00 in the morning session on Thursday. The company's shares opened at Rs 17501.25 on Thursday morning.
According to a term sheet seen by IFR, Volvo will be selling its remaining 3.7 per cent stake in Eicher Motors for around $278 million, Reuters reported. Volvo is offering about 1 million shares in a price range of Rs 17,190-18,190 in an open market sale.
In March, Volvo sold 1.27 million Eicher shares for around 2.5 billion Swedish crowns ($296.05 million). Volvo bought the Eicher stake in 2008 as part of a deal under which the Swedish company also set up a separate truck and bus making joint venture with Eicher in India.
"Eicher Motors wishes not to comment on any speculative news stories on Volvo," the company said in a statement. It added that all investments and business plans at the two companies' commercial vehicle joint venture continue as planned. A Volvo spokeswoman declined to comment.
Volvo is under pressure to demonstrate the benefits of years of cost cuts and has, in addition to major staff cuts, also sold off non-core assets in recent years, including its aerospace division in 2012, the Reuters report said.