In a surprise move, the promoters of SJS have sold 29.5% through the open market transactions.
- The selling is by a promoter entity, Evergraph Holdings Pte. It’s shareholding has consequently declined from 34.15% to 4.63%.
- What’s more interesting is – the combined promoter stake has now fallen to just 21.81% (from the earlier majority of 51.33%).
- The shares were sold in the range of Rs 600-600.06/ share, taking the combined transaction value to Rs 549.86 cr.
- Stake has been picked up by various known domestic and international funds.
The development has come as a total surprise to me.
Given the promoters have now declined significantly from the majority ownership position, I will shift from positive to neutral on the stock.
I like the business and hence will keep it under watch.
Few days back on August 18, the veteran investor Ashish Kacholia had also sold 1/4th of its holding for Rs 11.6 cr.
He held 4.34% stake before this sale.
Guess, he was aware about the prompters plan to sell and hence part sold himself.