During Monday’s trading session, the shares of a company engaged in manufacturing cigarettes slumped 7.5 percent to Rs. 477.9 on BSE, after SBI Mutual Fund sold a 2.89 percent stake in the company through a bulk deal on NSE.
With a market capitalization of Rs. 7,734.6 crores, at 11:12 a.m., the shares of VST Industries Limited were trading in the red at Rs. 455.35, down by 5.6 percent, as against its previous closing price of Rs. 482.2.
What’s the News:
According to the 6th September bulk deal data available with the NSE, SBI Mutual Fund offloaded nearly 4.46 lakh equity shares in VST Industries worth about Rs. 21.68 crores, equivalent to a 2.89 percent stake, at an average price of Rs. 485.35 per share.
Further, Derive Trading & Resorts Pvt. Ltd. also divested around 1.29 lakh shares (or 0.81 percent stake) in the company for approximately Rs. 6.22 crores, at an average price of Rs. 480.57 per share.
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On the buyer’s side, Maithan Alloys Limited bought about 1.12 lakh equity shares worth around Rs. 5.45 crores in VST Industries, at an average price of Rs. 485.57 per share.
Previous News:
On 25th July, the company’s Board recommended the issue of Bonus Shares in a 10:1 ratio. This means that shareholders will receive 10 new bonus equity shares of the face value of Rs. 10 each for every 1 equity share held.
The Board revised and fixed 6th September 2024, as the Record date to determine the eligibility of Members to receive bonus shares.
Financials:
The company experienced a decline in its revenue from operations, showing a year-on-year fall of around 4 percent from Rs. 333 crores in Q1 FY24 to Rs. 321 crores in Q1 FY25.
Similarly, its net profit decreased during the same period from Rs. 84 crores to Rs. 54 crores, indicating a decline of nearly 36 percent YoY.
Shareholding Pattern:
As per the shareholding pattern of June 2024, the Promoters hold a 32.16 percent stake in the company, Foreign Institutional Investors (FII) hold a
1.83 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 53 percent and 12.64 percent stake in VST Industries, respectively.
As of June 2024 shareholding pattern with the BSE, the renowned investor Radhakishan Shivkishan Damani holds nearly 36.33 percent stake in the company.
Stock Performance
Shares of VST Industries have delivered positive returns of nearly 42.7 percent in one year and around 32.3 percent in the last six months. So far in 2024, the stock has given about 48.5 percent of positive returns.
About the Company:
Incorporated in 1930, VST Industries Limited, formerly known as Vazir Sultan Tobacco Company, is engaged in the business of manufacturing and trading of cigarettes, tobacco and tobacco products.
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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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