Promoters reducing their stake in the company can be triggered by various reasons. It can be for fundraising, regulatory requirements, exit strategy, Changes in the Promoter’s Vision or Strategy, investment opportunities and much more.
Reducing promoter stake does not always signal a negative outlook for the company, but it is important for investors to assess the underlying reasons and implications based on the broader financial and strategic context.
Following are the three stocks in which the promoters have reduced their holdings:
Capacite Infraprojects Ltd:
With a market cap of Rs. 3,382.05 crores, the shares of a leading player in the the realty sector hit an intraday low of Rs. 393.35 per share, down 1.80% below yesterday’s close of Rs. 400.60. At 12:15pm the stock was trading at 406.75 above 1.55% above previous close.
According to the report, Rahul Ramnath Katyal, a member of the promoter group of Capacite Infraprojects Ltd, has sold 3.75 lakh shares of the company at a price of ₹396 per share. This sale represents a 0.44% stake in the company, with a total value of approximately ₹14.85 crores.The shares were purchased by Subir Malhotra, who is also a promoter of the company.
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For Q1FY25 the company reported a net profit increase of 180% to Rs. 53.43 crores compared Rs. 19.08 crores in Q1FY24, while revenue from operations increased by 32% to Rs.569.75 crores from Rs. 430.45 crores in comparison to the same period.
The shares of Capacite Infraprojects Ltd delivered returns of nearly 44 percent in six months as well as around 92.4 percent returns in the past year.
Five- Star Business Finance Ltd:
With a market cap of Rs. 23,643 crores, the shares of this finance stock opened at the day high of Rs.848.00 per share, up 4.95% above yesterday’s close of Rs. 808. At 11:49 am the share was trading at 806.40 per share.
On September 26, a substantial 11.20% stake in Five-Star Business Finance Ltd was sold through block deals worth ₹2,034.60 crores at a price of ₹800.5 per share, which
was lower than the previous close. The sellers in this transaction are likely to include Peak XV Partners Investments, a promoter, along with other private equity investors.
For Q1FY25 the company reported a net profit increase of 36.93% to Rs. 251.57 crores compared Rs. 183.71 crores in Q1FY24, while revenue from operations increased by 38.67% to Rs.666.14 crores from Rs. 480.37 crores in comparison to the same period.
With a market cap of Rs. 33,325.16 crores, the shares of this leading Textile stock was down 3.39% trading at 971.35 compared to the previous close of Rs. 1005.50 per share on Thursday’s morning session.
On 25th September, KP Ramaswamy, one of the promoters of KPR Mills, sold 1.05 crore shares worth ₹971.38 crores at a price of ₹925.12 per share. This price represents an 8.68% drop from the previous Wednesday’s closing price.
Following this transaction, KP Ramaswamy has reduced his stake in KPR Mills from 21.37% to 18.3%, marking a 3.07% reduction in his holdings. A significant portion of this transaction, approximately 2.85%, was acquired by SBI Capital, which has strategically increased its stake in KPR Mills from 4.89% to 7.74%.
For Q1FY25 the company reported a net profit of Rs. 203.31 crores compared to Rs. 202.84 crores in Q1FY24, while revenue from operations of Rs.1,539.67 crores from Rs. 1,550.74 crores in comparison to the same period.
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Written By: Joseph Pv
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