New Delhi. Shares of the country's leading luggage company VIP Industries rose by more than 7 percent in early trading on December 24. This rise in the company's shares came after a big block deal, in which about 3.7 crore shares were transacted. The special thing is that this is about 26 percent of the equity stake of the company. Due to this, frequent changes in the ownership of the company are being seen.
Shares of VIP Industries Shares opened at Rs 362 and hit a high of Rs 397 in early trade. The special thing is that this rise in the shares of this company has come after about 3 months.
Between whom did the block deal take place in VIP Industries?
The names of the buyers and sellers in Wednesday's block deal in VIP Industries were not immediately revealed, but the VIP Industries block deal follows a series of promoter stake sale transactions over the past few months. The size of the block deal is also equal to the number of remaining open-offers announced earlier by Multiples Private Equity and a consortium of its partners.
What is a block deal?
Bulk deal and block deal are two types of transactions in the stock market which are used by institutional investors, large fund houses, mutual funds, FIIs and HNIs to transact large number of shares.
In a block deal, a transaction takes place between two parties for a minimum quantity of 500,000 shares or a minimum value of Rs 10 crore, in which they agree to buy or sell shares at a mutually agreed price.
Promoters sold stake in September also
Earlier in September, VIP Industries promoters had sold 6.2 per cent stake for Rs 343 crore through a block deal in which Piramal Vibhuti Investments and Kiddy Plast sold 88.4 lakh shares at an average price of Rs 388.2 per share. During that time, Multiples Private Equity Fund had then bought 60 lakh shares for Rs 233 crore, while another group had bought 22 lakh shares for Rs 86 crore.
Let us tell you that the shares of VIP Industries have given a negative return of 17 percent in the last one year, whereas this year these shares have fallen by 20 percent.
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(Disclaimer: The information given here regarding shares is not an investment opinion. Since investing in the stock market is subject to market risks, please consult a certified investment advisor before investing.)
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