Embassy REIT plummets 5% after Rs 7,148 crore block deal

20 Dec 2023 , 02:36 PM

Embassy Office Parks REIT shares fell roughly 5% in early trading on December 20 following a Rs 7,148-crore block deal. The counter touched an intraday low of Rs 316.

At a floor price of Rs 319.65, about 22.36 crore shares, representing a 23.60% stake in Embassy Office Parks REIT, changed hands on the stock exchanges.

The block transaction has also resulted in a surge in volume in the counter, with 23 crore shares changing hands on the bourses thus far, much above the one-month daily traded average of 9 lakh shares.

Earlier it was reported that the private equity firm Blackstone was planning to exit Embassy Office Parks REIT, through a mega block deal of $833 million.

The private equity group wanted to sell its whole 23.6% stake in the Embassy REIT through the transaction method at a floor price of Rs 310 per share, representing a nearly 8% discount to the stock’s previous closing price of Rs 335.75.

Aside from Blackstone, other notable institutional investors that hold stake in Embassy REIT include Abu Dhabi Investment Authority, Capital Group, and Bain Capital.

At around 2.33 PM, Embassy REIT was trading 1.01% lower at Rs 332.15, against the previous close of Rs 335.64 on NSE, recovering from early losses. 

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