Bajaj Finserv Share Price Swings As Promoters Initiate Stake Sale Via Block Deal

Bajaj Finserv Ltd. saw its share price gain 2.35% before slipping 0.59% as promoters commenced a stake sale through a block deal. On Friday, 2.85 crore shares of Bajaj Finserv were exchanged in a substantial pre-market transaction.

The company had announced on Thursday that promoter entities were planning to offload shares worth Rs 5,800 crore via open market transactions. Bajaj Holdings and Investments along with Jamnalal Sons are offering up to 3.1 crore shares, representing a 1.94% stake, through block deals.

The floor price for the shares has been set at Rs 1,880 per share, which is a 3.3% discount to the stock's last closing price, as per the term sheet reported by Bloomberg. The base offer includes 2.53 crore shares, with an option to increase by an additional 57 lakh shares.

As of March, Bajaj Holdings holds approximately 39% equity in Bajaj Finserv, while Jamnalal Sons has a 9.7% stake, according to data from the Bombay Stock Exchange.

The scrip rose as much as 2.35% but later slipped 0.59% to Rs 1,932.50 apiece. It pared losses to trade 0.17% lower at Rs 1,940 apiece, as of 09:28 a.m. This compares to a flat NSE Nifty 50.

It has risen 27.13% in the last 12 months. Total traded volume so far in the day stood at 34 times its 30-day average. The relative strength index was at 38.

Out of 13 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.1%.