Radhakishan Damani, through his investment firms, sold a total of 3.52 lakh shares in a company engaged in manufacturing cigarettes, bringing the total deal value to Rs. 143.6 crore through open market transactions.
Despite this significant sell-off, the shares of VST Industries Limited surged 5.7 percent on BSE to hit an intraday high at Rs. 4,103.7 in Thursday’s trading session.
As of 11:52 a.m., the stock was trading at Rs. 4,000.05, up by 3 percent from the previous close of Rs. 3,883.05, with a market capitalisation of Rs. 6,176.8 crore.
What’s the news:
According to the 24th July bulk deal data available with the NSE, Radhakishan Damani offloaded a 2.28 percent stake through his investment firms, amounting to Rs. 143.6 crore.
In a separate transaction, Derive Trading & Resorts Pvt. Ltd. sold 2.62 lakh equity shares valued at Rs. 107.8 crores in VST Industries on NSE, equivalent to a 1.7 percent stake, at an average price of Rs. 4,102.57 per share.
Additionally, Limited Damani Estate And Finance Private divested 90,000 equity shares in the company, representing a 0.58 percent stake, at an average price of Rs. 3,983.84, valued at Rs. 35.8 crore.
As of June 2024 shareholding pattern with the BSE, the renowned investor Radhakishan Shivkishan Damani holds nearly 36.3 percent stake in the company.
Additional News:
The positive fluctuations in the share price of VST Industries could be attributed to upcoming developments, notably the Board meeting scheduled for Thursday, July 25th.
During this meeting, the Board will consider and approve the financial results for Q1 FY24-25, as well as consider the issue of Bonus Shares.
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Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of nearly 22.4 percent from Rs. 388.2 crore in Q4 FY22-23 to Rs. 475 crore in Q4 FY23-24.
Similarly, its net profit increased during the same period from Rs. 68.7 crore to Rs. 88 crore, indicating a growth of 28 percent YoY.
Stock Performance:
The stock has delivered nearly positive returns of nearly 46.2 percent in one year, and around 23.2 percent returns in the last six months. So far in 2024, the shares of HEG Limited have given positive returns of about 17.4 percent.
About the company:
Incorporated in 1930, VST Industries Limited, erstwhile Vazir Sultan Tobacco Company, is engaged in the business of manufacturing and trading of cigarettes, tobacco and tobacco products.
Located in Hyderabad, the company is an associate undertaking of British American Tobacco Plc., the global leader in cigarettes.
Written by Shivani Singh
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