Polycab Block Deal: Foreign Investors Acquire Stake Worth Rs 1,740 Crore
In a significant development, seven individuals, including promoters of Polycab India, sold a combined 1.55% stake in the electrical equipment manufacturer on Thursday, raising nearly Rs 1,740 crore through open market transactions.
Block Deal Details
According to block deal data on the NSE, promoters Ramesh Thakurdas Jaisinghani, Ajay Jaisinghani, Bharat Jaisinghani, Inder Thakurdas Jaisinghani, Nikhil Ramesh Jaisinghani, and Girdhari Thakurdas Jaisinghani trimmed their holdings in the Mumbai-headquartered company. In addition, Anil Hariram Hariani, Director of Commodities at Polycab India and a public shareholder, also offloaded part of his stake.
Key Buyers
Among the key buyers of the shares were JP Morgan, Morgan Stanley Asia Singapore, Societe Generale, HDFC Standard Life Insurance, Kotak Mahindra Life Insurance, Ghisallo Capital Management, Tata Mutual Fund, ASK Investment Managers, and Hong Kong-based hedge fund Viridian Asset Management.
These individuals collectively sold over 23.32 lakh equity shares, representing a 1.55% stake in separate deals. The combined transaction was valued at around Rs 1,739.74 crore and was executed at the price of Rs 7,458 apiece.
Impact on Share Price
Shares of Polycab India fell 1.96% to close at Rs 7,385 apiece on the National Stock Exchange. This decline can be attributed to the large-scale selling by the promoters and the public shareholder.
Q1FY26 Results
In July this year, Polycab India reported a 50% year-on-year growth in its Q1FY26 net profit to Rs 592 crore, compared to Rs 396 crore posted in the year-ago period. The revenue from operations rose 26% YoY at Rs 5,906 crore against Rs 4,698 crore in the year-ago period.
Awfis Space Solutions Bulk Deal
In a separate bulk deal on the NSE, QRG Investments and Holdings, one of the promoters of Havells India, sold a little over 3.67 lakh shares or 0.51% stake in Awfis Space Solutions for nearly Rs 22 crore through an open market transaction.
The shares were disposed of at an average price of Rs 591.17 apiece, taking the deal value to Rs 21.72 crore. After the share sale, QRG Investments and Holdings’ equity stake in Awfis Space Solutions has come down to 4.56% from 5.07%.
Market Reaction
Shares of Awfis Space Solutions slipped 0.70% to settle at Rs 585.20 per piece on the NSE.
Investor Takeaways
The block deal in Polycab India and the bulk deal in Awfis Space Solutions are significant events that can impact investor sentiment. Foreign investors, including JP Morgan and Morgan Stanley, have shown interest in Polycab India, which can be seen as a positive sign for the company’s future prospects.
However, investors should also consider the decline in share price and the selling by promoters before making any investment decisions. It is essential to keep a close eye on the company’s financial performance and market trends to make informed investment decisions.
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