Aditya Birla Fashion Stock Takes a 9% Hit Amid Block Deal Speculation
Shares of Aditya Birla Fashion and Retail experienced a significant decline on Tuesday. The stock price dropped by a sharp 9% during the trading session. This fall followed reports of a substantial block deal involving the company.
Details of the Major Transaction
According to sources cited by CNBC-TV18, the block deal involved approximately 4.35 crore shares. This number represents about 3.57% of the company's total equity. The shares traded at an average price of ₹66.4 each. This transaction resulted in a total deal value of ₹289 crore.
For Aditya Birla Lifestyle Brands, a related entity, the deal included 2.8% of its total equity. The identities of both the buyers and the sellers remain confidential at this time. The transaction concerning the demerged entity has not yet occurred.
Background and Market Anticipation
On Monday, January 19, CNBC-TV18 reported that block deals were expected for two firms within the Aditya Birla Group. It remains unclear who intends to sell their stake in these transactions. Mint could not immediately verify these details. Information about such block deals typically becomes available on the exchanges after market hours.
The report further indicated that an institutional investor plans to divest up to 3% of its equity in Aditya Birla Lifestyle Brands Ltd. This block deal is valued at $43 million. Sources set the floor price for this transaction at ₹106.14 per share. CNBC-TV18 described this as a clean-out trade.
Shareholding Patterns and Additional Deal
As of the end of the September quarter, promoter group Pilani Investment and Industries owned 3.67% of the company. SBI Life Insurance Co. Ltd. held a 2.25% stake. These details come from the same report.
In Aditya Birla Fashion and Retail Ltd, an unnamed institutional investor was expected to sell a portion of up to 3% of its stake. This block deal is valued at $32 million with a floor price of ₹65.78 per share. CNBC-TV18 also labeled this as a clean-out trade, citing their sources.
Today's Stock Performance
Aditya Birla Fashion share price opened at ₹68.06 apiece on the BSE today. The stock reached an intraday high of ₹68.18 and an intraday low of ₹65.81 during the session. The market continues to react to the news of the block deal and the associated speculation.
