Big Bulk deals : Promoters Arpwood offloads stake in SBFC Finance

Big Bulk deals

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Big Bulk deals : Promoter Arpwood Partners Investment Advisors LLP sold their entire 4.51 crore shares, which is 4.2 percent stake in the company at an average price of Rs 88

Big Bulk deals : In SBFC Finance, Promoter Arpwood Partners Investment Advisors LLP sold their entire 4.51 crore shares – a 4.2 percent stake in the company at an average price of Rs 88. Another entity,  Arpwood Capital Private Ltd also offloaded their entire stake of 1.10 crore shares, a 1.03 percent stake at Rs 88.03. The promoters sold Rs 494.42 crore worth of shares.

Meanwhile, SBI Mutual Fund bought 1.93 crore shares, a 1.8 percent stake at Rs 88 per share. SBI Smallcap Fund already holds a 7.22 percent stake in the company til March 2024. SBI Mutual fund bought Rs 169.99 crore worth of stakes. Big Bulk deals

Custody Bank of Japan Ltd RE RB Amundi Small Cap Equity Mother Fund picked up 1.13 crore shares, a 1.06 percent stake at an average price of Rs 88. Morgan Stanley Asia Singapore PTE acquired 68.74 lakh shares, a 0.64 percent stake at Rs 88 per share. Big Bulk deals

Shares of SBFC Finance plunged 5.07 percent to Rs 87 on NSE.

In Cartrade Tech, CMDB II, a JP Morgan Private Equity Fund, sold 3.75 lakh shares, a 0.79 percent stake at an average price of Rs 700.15. CMDB II held a 6.37 percent stake in the company til March 2024.Big Bulk deals

Cartrade Tech stock fell 2.98 percent to Rs 707 on the NSE.

In Nirlon, ICICI Prudential Mutual Fund picked 33.78 lakh shares, a 3.75 percent stake at Rs 430 per share. Albula Investment Fund sold 30 lakh shares, a 3.33 percent stake at the same price. Albula held a 6.14 percent stake till March 2024.

Shares of Nirlon rose 2.1 percent to Rs 441.50 on BSE. Big Bulk deals

In the newly-listed JNK India, Kotak Mahindra Mutual Fund bought 3.12 lakh shares, a 3.25 percent stake at an average price of Rs 647.81. Kotak Mahindra Multicap Fund acquired 9 lakh shares, a 9.38 percent stake at Rs 649.02 per share. Additionally, DSP Mutual Fund bought 5 lakh shares, a 5.21 percent stake at an average price of Rs 621. Big Bulk deals

JNK India had a strong start in the bourses as the stock surged 67.36 percent to Rs 694.55 on the NSE.

Here’s a breakdown of the news about Arpwood offloading its stake in SBFC Finance:

  • Arpwood Partners, a promoter group in SBFC Finance, sold its entire stake in the company. This means they no longer hold any ownership in SBFC Finance.
  • The sale involved two entities: Arpwood Partners Investment Advisors LLP and Arpwood Capital Pvt Ltd.
  • They sold a total of 5.6% stake, representing around 6 crore shares, for a total value of Rs 494 crore.
  • The average price per share was around Rs 88.

Impact:

  • SBFC Finance share price fell by about 3% after the news broke, likely due to investor uncertainty about the reasons behind the sale.

Additional Info:

  • This comes after SBFC Finance reported a 71% increase in net profit for the quarter ending March 2024.
  • The remaining promoter group of SBFC Finance still holds a majority stake of over 60%.
  • Some analysts believe SBFC Finance stock may be fairly valued now, while others maintain a buy recommendation.

Who are Bulk Buyers?

The article doesn’t mention the specific names of the bulk buyers, but it does say they include entities like:

  • Custody Bank of Japan
  • Amundi India Small Cap Equity Mother Fund
  • Morgan Stanley Asia Singapore
  • SBI Mutual Fund

These are likely institutional investors who see value in SBFC Finance despite the promoter stake sale.

Why this might have happened:

The news article doesn’t speculate on the reasons behind the sale. Here are some possibilities:

  • Arpwood Partners may be looking to invest in other opportunities.
  • They may want to diversify their holdings.
  • There could be internal reasons within the company or the promoter group.

Overall, this is a significant development for SBFC Finance, but it’s too early to say what the long-term impact will be.

Big Bulk deals : In April 2024, Arpwood Partners, a promoter group in SBFC Finance, offloaded their entire stake in the company. This included

  • Arpwood Partners Investment Advisors LLP: Sold 4.51 crore shares (4.2% stake) at an average price of Rs 88 per share.
  • Arpwood Capital Pvt Ltd: Sold 1.10 crore shares (1.03% stake) at an average price of Rs 88.03 per share.

The total transaction value was around Rs 494 crore. The news caused SBFC Finance’s share price to drop by around 4%.

Here are some possible reasons why Arpwood Partners might have decided to sell their stake:Big Bulk deals

  • To lock in profits: SBFC Finance had reported a strong financial performance, and Arpwood Partners might have decided to cash out on their investment.
  • To invest in other opportunities: They may have identified better investment opportunities elsewhere.
  • Changes in their investment strategy: Their investment strategy might have shifted, leading them to sell their stake in SBFC Finance. Bulk deals

It’s important to note that without an official statement from Arpwood Partners, the exact reason for their stake sale remains unknown. Big Bulk deals

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