Amara Raja Batteries Drops 6% on Huge Bulk Transactions
Shares of Amara Raja Batteries fell 6% to Rs 736.70 on the National Stock Exchange (NSE) in intraday trading on Tuesday after nearly 30 million shares of the battery maker changed hands on the counter.
At 9.48am, the stock was trading down 5% to Rs 743.95, against a 0.37% rise in the Nifty 50 index. About 29.6 million shares, representing 17% of the Amara Raja Batteries’ total capital, have changed hands on the NSE. A total of 33.8 million shares, representing 19% of the company’s total equity, changed hands on the combined NSE and BSE, according to exchange data. The names of the buyers and sellers were not immediately determined.
According to a press report, Clarios was to sell 17.1 million shares for a total of $ 174 million today. The floor price for the same had been set at Rs 746 per share.
As of March 31, 2021, Clarios ARBL Holding LP held a stake of 41 million or 24% in Amara Raja Batteries, according to shareholder structure data.
Meanwhile, Amara Raja Batteries’ stock traded lower for the second day in a row, down 7%, amid concerns over low visibility of demand and lead price inflation that was rising. may impact performance in the short term. The company announced a 33% increase in year-over-year (YoY) revenue to Rs 2,103 crore for the quarter ended March 2021 (T4FY21). Profit before tax increased 46% year-on-year to 259 crore rupees.
Motilal Oswal Securities analysts maintained a neutral rating on the stock, as expectations of healthy earnings growth offset the growing threat lithium technology poses to its automotive and industrial businesses.
Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues. However, we have a demand.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.