A bulk deal refers to a significant stock transaction in which a single investor buys or sells shares amounting to more than 0.5 percent of a company’s total share capital.
This type of deal can involve multiple investors and is executed during the regular trading hours of a stock exchange and must be reported publicly, ensuring transparency in the market.
Following are the two stocks that experienced price fluctuations due to the buying or selling activities of different institutional investors:
Gujarat Toolroom Limited
With a market cap of Rs. 219.7 crores, the shares of a company in the business of development and operation of mines and minerals hit a 2 percent lower circuit at Rs. 13.72 on BSE, as against its previous closing price of Rs. 13.99.
According to the 15th October bulk deal data available with the BSE, a foreign portfolio investor Zeta Global Funds (OEIC) PCC Limited sold nearly 1.13 crore shares (or 7.1 percent stake) in Gujarat Toolroom, at an average price of Rs. 14.31 per share, resulting in a total transaction value of nearly Rs. 16.3 crores.
Additionally, on October 14th, another foreign portfolio investor, Eminence Global Fund PCC, through Eubilia Capital Partners Fund I, offloaded around 82.3 lakh equity shares (or a 5.14 percent stake) in the company for around Rs. 11.3 crores, at an average price of Rs. 13.7 per share.
As of the shareholding pattern on October 4th, both Zeta Global Funds (OEIC) PCC Limited and Eminence Global Fund PCC held a 13.58 percent stake each in Gujarat Toolroom.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 26300% from Rs. 1 crore in Q1 FY24 to Rs. 264 crore in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 1 crore to Rs. 23 crore, indicating a rise of nearly 2200% YoY.
Gujarat Toolroom Limited is engaged in a diversified trading business, dealing in a wide range of products including silver conductive ink, agriculture commodities, construction materials, fabrics, as well as trading of equity shares.
Mastek Limited
With a market cap of Rs. 9,096.8 crores, the shares of a leading digital engineering and cloud transformation partner surged nearly 3.3 percent to Rs. 2,999 on BSE, as against its previous closing price of Rs. 2,904.25.
According to the 15th October bulk deal data available with the BSE, Aalidhra Textool Engineers Private Limited purchased 2 lakh equity shares (or a 0.65 percent stake) in Mastek, at an average price of Rs. 2,800.81 per share, resulting in a total transaction value of nearly Rs. 56 crores.
However, on the seller side, foreign portfolio investor Smallcap World Fund Inc sold 5.3 lakh equity shares, representing a 1.7 percent stake, of Mastek at Rs. 2,801.68 per share, bringing the deal value to around Rs. 148.48 crores.
As of June 2024 shareholding pattern, Smallcap World Fund Inc held a 7.94 percent stake each in Mastek Limited.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 12.2 percent from Rs. 725 crores in Q1 FY24 to Rs. 813 crores in Q1 FY25.
However, its net profit decreased marginally during the same period from Rs. 74 crores to Rs. 72 crores, indicating a decline of nearly 2.7 percent YoY.
The stock has delivered positive returns of nearly 22.4 percent in one year, as well as around 6.2 percent returns year-to-date.
Mastek Limited is a provider of vertically-focused enterprise technology solutions. The portfolio of the company’s offering includes business and technology services comprising application development, application maintenance, business intelligence and data warehousing, testing & assurance and legacy modernisation.
Written by Shivani Singh
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