It was followed by a major block deal of ₹3,184.50 crore executed on Kalyan Jewellers, probably Highdell Investment selling part stake to the company promoter Trikkur Sitarama Iyer Kalyanaraman on August 22.
This came to around 5.90 crore shares, or 5.7% of the company, changing hands at a floor price of ₹539 a share. Though parties to the deal were not immediately known, Kalyan Jewellers informed exchanges that the company’s promoter had entered into a share purchase agreement with Highdell Investment.
Under the pact, Highdell Investments agreed to sell 2.42 crore equity shares at ₹535 per share to Trikkur Sitarama Iyer for a total consideration of ₹1,300 crore.
Post transaction, promoter and promoter group’s shareholding will go up to 62.95 per cent from 60.59 per cent as of June quarter end, while highdell Investment’s stake would come down from 9.17 per cent as of June-end.
It is expected that this block deal comes at a time when Kalyan Jeweller’s stock surged nearly 140 percent in the last three months. Strong financial performance saw net profit rise 24 percent year-on-year for the quarter ended June at ₹177 crore and revenue by 26.5 percent to ₹5,535.5 crore. Of late, quarters have definitely witnessed a change in investor sentiment in terms of foreign institutional investors reducing their stake, while domestic institutional investors have increased it considerably.
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Source: Moneycontrol
News Desk
