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BlackRock Inc has sold a small portion of its holding in engineering and farm equipment maker Escorts for about ₹700 crore.
In an announcement made on Monday, the company said BlackRock, on behalf of its discretionary management clients, the company has offloaded 4,41,136 shares on 19 September 2019 and value per share on 19 September was approximately 514.50 i.e. total offloading of Rs 22.7 crore.
Interestingly, Tower Research Capital Markets India sold shares worth ₹47 crore on September 20. It sold 850,754 shares at ₹548.48 a piece.
In the first quarter of FY20, the net sales of Escorts were down 6 per cent at ₹1,440 crore (₹1,529 crore), while net profit dipped 28 per cent to ₹88 crore (₹121 crore). The one-year return of the share dipped 8 per cent, while the Sensex was up 6 per cent.
Depressed realisation from farm products had hit farmers’ ability to spend money on farm equipment, resulting in lower tractor sales and other implements, said an analyst.
Almost widespread monsoon during this Rabi season may increase farm output and put pressure on farmers’ realisations. Though the government had hiked minimum support price, implementation of it is still an issue, he added.
On Monday, the shares of Escorts surged 11.74 per cent to close at ₹634.6, on the BSE.
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