A block deal refers to a single transaction in the stock market involving the trading of at least 5,00,000 shares or a minimum value of Rs.10 crores.
These deals are executed during specific trading periods known as block deal windows, which are distinct from regular trading hours. Typically conducted by large institutional investors, block deals remain invisible to retail investors in real time.
Here are two block deals that took place in two prominent firms on Friday:
Shivalik Bimetal Controls Ltd
In a block deal involving Shivalik Bimetal Controls, approximately 81.8 lakh shares were exchanged at a floor price of Rs.611 per share, indicating a nearly 1 percent discount from the previous closing price.
With a market capitalization of Rs.3,583 crore, the share price of Shivalik Bimetal Controls Ltd closed at Rs.624 per share on Friday, rising 1.18 percent from its previous close.
In its latest financial update, the company reported revenue of Rs.107 crore for Q1 FY25, down 5 percent from Rs.113 crore in Q1 FY24. Additionally, the company’s net profit fell to Rs.16 crore, compared to Rs.20 crore in the same period, representing a 20 percent decline.
The recent block deal in the company can significantly enhance the company’s liquidity and attract institutional investors. This increased liquidity may improve investor confidence and foster interest in the stock, supporting future growth initiatives.
Sterling & Wilson Renewable Energy Ltd
Sterling and Wilson Renewable Energy shares increased following a substantial transaction valued at Rs.1,192 crore on the stock exchanges.
In this significant deal, about 1.90 crore shares of Sterling and Wilson, accounting for 8 percent of the total equity, were exchanged at a floor price of Rs.629 per share, which is a slight drop from the previous closing price.
With a market capitalization of Rs.15,172 crore, the share price of Sterling and Wilson Renewable Energy Ltd closed at Rs.652.90 per share on Friday, rising 1.63 percent from its previous close.
In its latest financial update, the company reported revenue of Rs.915.06 crore for Q1 FY25, a 78 percent increase from Rs.514.96 crore in Q1 FY24. Furthermore, the company’s net profit rose to Rs.4.83 crore, contrasting with a net loss of Rs.95.32 crore in the same period last year.
The block deal will enhance Sterling and Wilson Renewable Energy’s liquidity, allowing for greater flexibility in funding growth initiatives. Additionally, it may boost investor confidence and attract more institutional interest, further strengthening the company’s market position.
Written by – Siddesh S Raskar
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