Jyoti CNC Share Price Declines After Block Deal Of 6% Equity

Jyoti CNC Automation Ltd. witnessed a decline in its share price on Monday, dropping over 4% following a block deal involving 6% of its equity. Shareholders sold shares through block deals, amounting to at least Rs 1,542 crore.

Nearly 1.37 crore shares were offered in the secondary market, representing a 6% stake in the Rajkot-based machine tool manufacturer. On Friday, the floor price was set at Rs 1,125.6 per share, matching Friday's closing price on the NSE.

The block deal window opens during the morning trading session from 8:45 a.m. to 9:00 a.m. and in the afternoon trading session from 2:05 p.m. to 2:20 p.m.

Block deals are executed off the exchange's central order book and are typically negotiated between institutional investors such as mutual funds, insurance companies, or banks. As of Friday, public shareholders owned 37.45% equity in Jyoti CNC Automation Ltd., with mutual funds holding 10.35% and foreign portfolio investors 7.2%.

The scrip fell as much as 4.35% to Rs 1,076.60 apiece. It pared losses to trade 2.54% lower at Rs 1,097 apiece, as of 09:29 a.m. This compares to a flat NSE Nifty 50.

It has fallen 17.78% in the last 12 months. Total traded volume so far in the day stood over 5 times its 30-day average due to the block deal. The relative strength index was at 37.

The one analyst tracking the company maintained a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 22.4%.