Why has Bata India's stock price fallen today?

1 Jun 2022 , 03:30 PM

Bata India’s stock price has fallen by more than 1.4% today, by 3:10 p.m. Indian time. This decline happened because promoters of Bata India sold 2.8% of their stake in the company in a bulk deal. Promoter of Bata India is the trust Bata (BN) BV. Before this stake sale, the promoter held around 52.9% stake in the company.

2.8% stake amounted to sale of 36 lakh shares of the company. These shares were sold at the price of Rs1850 per share. The shares have been sold to qualified institutional buyers. When sale of such a large number of shares take place in a bulk deal by the promoter entity, the price of the stock tends to see a decline.  

In the quarter ended on 31^st March 2022, net profit of Bata India stood at Rs62.96 crore. In the corresponding quarter of the previous year, net profit of the company stood at Rs29.47 crore. Bata is one of the most iconic brands in the footwear industry in India. Over the years, the company has been able to provide good quality and affordable footwear through its network of retail stores, spread across India.