Now Reading: Pilani Investment sells 0.85% UltraTech Cement stake for Rs 2,896 crore
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Pilani Investment sells 0.85% UltraTech Cement stake for Rs 2,896 crore
Pilani Investment sells 0.85% UltraTech Cement stake for Rs 2,896 crore
Pilani Investment and Industries Corporation sold 25 lakh UltraTech Cement shares, or 0.85% of the company, for Rs 2,896.25 crore through block deals on Thursday, The Hindu BusinessLine reports. The shares changed…
The Story in Brief
Pilani Investment and Industries Corporation sold 25 lakh UltraTech Cement shares, or 0.85% of the company, for Rs 2,896.25 crore through block deals on Thursday, The Hindu BusinessLine reports. The shares changed hands in 18 tranches at an average Rs 11,585 each. Pilani Investment’s holding fell to nearly 1% from 1.5%, while the combined promoter and promoter-group holding declined to 58.49% from 59.33%.
Domestic institutions including HDFC Mutual Fund, ICICI Prudential Mutual Fund and Kotak Mahindra Mutual Fund bought shares. JP Morgan and Norway’s Government Pension Fund Global also participated. UltraTech shares closed nearly 1% lower at Rs 11,750 on the BSE. The sale follows the company’s agreement to acquire 26% of Solaris Horizon Energy. UltraTech reported a 17.23% rise in June-quarter net profit to Rs 2,603.72 crore.
The Indian Opinion
The easy narrative is that a promoter sale signals trouble, but the disclosed buyers include large domestic institutions and foreign investors, while UltraTech’s latest quarter showed higher profit and revenue. The opposite claim, that the transaction proves unqualified strength, would also go too far. Pilani’s reduced holding deserves monitoring, particularly if more promoter shares are sold. The clearest test is whether promoter ownership falls further from 58.49% or operating performance weakens in the next quarter.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
