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Denim maker Arvind Ltd’s stock prices hit a record high on the BSE amid buzz about a block deal by a private equity fund on Thursday.
The stock of Arvind Ltd has been witnessing a stellar run on the bourses in the last three months. On Thursday, the stock hit Rs 150 after huge volume of shares changed hands.
Buys 63 lakh shares According to the NSE bulk deal data, Renuka Ramnath-led Multiples Private Equity Fund bought 63.33 lakh shares on the NSE. On the BSE, the PE fund lapped up another 35.25 lakh shares at an average price of Rs 149.93.
The exchanges, however, did not disclose the sellers’ names.
According to a company official, no insider has sold any stake in the company. It must be open market deal between private parties, according to the official. Commenting on the development, Jayesh Shah, Director and Chief Financial Officer, told Business Line , “There is no selling of shares by the company promoters. We are unaware about the said block deal.”
Earns FIIs confidence Of late, foreign institutional investors have been showing immense confidence on the company, he added. However, data available with the stock exchanges show that FII’s stake in the company has reduced from 16.51 per cent in March 2013 to 15.71 per cent in the September quarter.
Maintaining a neutral stand on the share prices, Madhumita Ghosh, an independent financial expert, said: “The stock had been under-rated for long. The company has shown robust quarterly results for the past two quarters. Also, the margins have improved over the past months. This has boosted the company’s prospects.”
On Thursday, Arvind shares closed with a gain of Rs 5.55 or 4 per cent on the BSE.
In August 2013, Arvind shares had touched a 52-week low of Rs 65.
For the quarter ended September 30, Arvind Ltd reported a net profit of Rs 93.28 crore on revenues of Rs 1,192.89 crore.
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