As per the agreement, Eureka will be separated from the parent into a standalone firm and then will be listed on the Bombay Stock Exchange (BSE).
After the listing, Advent will then acquire a controlling stake to the tune of 72.56% of the company's outstanding shares on a fully diluted basis from Shapoorji Pallonji.
Following the acquisition, the US-based private equity firm will also make an offer as per the Sebi takeover code.
The deal is subject to regulatory approval.
The transaction will enable Shapoorji Pallonji Group to pare its debt which is at Rs10,900cr at present.
Eureka Forbes is one of 17 companies under the Shapoorji Pallonji Group, which was established in 1865 and is present in over 70 countries around the world today.
Founded in 1982, Eureka Forbes Limited is a multi-product, multi-channel organization and India’s leading health and hygiene brand. In addition to Asia’s largest direct sales force, it has retail, institutional and e-commerce channels, an inventive franchise business partner network, a rural channel and one of the most expansive service networks in India.