Amara Raja tumbles ~5% as Clarios ARBL Holding may pare entire 14% stake

18 Jul 2023 , 10:46 AM

Shares of Amara Raja Batteries Limited plunged as much as 5% in today’s trade as speculations of Clarios ARBL Holding offloading its entire stake in the company are making rounds.

Reports cited that foreign investor, Clarios ARBL Holding LP, may mark its exit from the company by selling its entire 14% stake through a block deal.

The block deal will be launched on July 18, according to people familiar with the situation. The floor price is expected to be Rs 651 per share. This represents a 5% discount from the current market price.

According to the shareholding pattern disclosed to the stock markets, Clarios ARBL Holding, a stakeholder in Amara Raja through foreign direct investment, has a total of 2.39 crore shares, representing 14% of the total stake.

The equity sale came nearly two years after Clarios reduced its ownership in Amara Raja by 10%. In May 2021, it affected a block deal to sell 1.71 crore shares.

Meanwhile, Amara Raja reported a 41% year-on-year increase in net profit to Rs 139 crore in the March 2023 quarter. During the same period, the company’s revenue from operations climbed by 11.37 percent to Rs 2,429 crore.

At around 10.43 AM, Amara Raja Batteries was trading 4.85% lower at Rs 651.80, against the previous close of Rs 685 on NSE. The counter plunged to an intraday low of Rs 643.40.

For feedback and suggestions, write to us at [e-mail]