Piramal Enterprises promoter acquires additional stake

19 Aug 2024 , 01:01 PM

Piramal Enterprises Ltd. announced on Monday that a promoter group business purchased 6.16 lakh equity shares, accounting for 0.27% of the company’s total paid-up share capital, on August 16.

With this transaction, the promoter group’s stake climbed from 46.03% to 46.3% of the company’s total paid-up share capital, according to a stock exchange filing.

The purchase demonstrates the company’s continued confidence in its growth and future prospects. The promoters had also declined to participate in the company’s 2023 share purchase, according to the filing.

According to stock exchange data, as of June 30, 2023, mutual funds own 6.26% in Piramal Enterprises, while foreign portfolio investors (FPIs) own around 16%.

The stock remains subject to the F&O prohibition, which means that no new positions can be opened. However, following the promoter buy, which was not disclosed on Friday, the stock increased by more than 7%, recouping the majority of the losses it suffered on Wednesday following its quarterly reports.

Piramal Enterprises reported a 60.5% reduction in Net Profit for the June quarter to ₹228.1 Crore, while Net Interest Income fell 63.3% to ₹348.2 Crore.

Asset quality deteriorated slightly, with Gross NPA at 2.7%, up from 2.4% in March, and Net NPA at 1.1%, down from 0.8% in March. Management has also indicated that there will be some near-term pressure on funding costs.

At around 10.26 AM, Piramal Enterprises was trading 1.44% higher at ₹961.50, against the previous close of ₹947.35 on NSE. The counter touched an intraday high and low of ₹965.90, and ₹949.40, respectively.

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