Coromandel International’s Shares Fall After A Large Trade

Shares of Coromandel International Ltd. fell the most in four months after a large trade on the bourse.

As many as 58.5 lakh shares, or 2% of the company's equity, exchanged hands in a single large trade at Rs 813.95 apiece, according to data available on Bloomberg. That's shares worth Rs 478 crore.

Promoter EID Parry (India) Ltd., in a separate filing on Wednesday afternoon, clarified that it has sold the 58.5 lakh shares in Coromandel International. Post the sale, the company holds 16.55 crore shares of Re 1 each representing 56.42% of the paid-up capital of Coromandel. That's down from 58.42% as of September.

Kotak Securities was the sole broker for the share sale.

The base size of the issue was 37.5 lakh shares with an option to upsize the deal by selling another 21 lakh shares. The price range was fixed between Rs 800 and Rs 825 apiece, implying a 3-6% discount to Tuesday's closing price.

“The proceeds of the sale will be used to bring down the debt of the company including its wholly-owned subsidiary, Parry Sugars Refinery India Pvt. Ltd. and for general corporate purposes,” EID Parry said in its filing.

Shares of Coromandel International fell as much as 5.8% in early trade on Wednesday—the biggest single-day drop since August this year—to Rs 802 apiece. Of the 18 analysts tracking the company, 14 have a ‘buy' rating, three suggest a ‘hold' and one recommends a ‘sell'. The average of Bloomberg consensus 12-month target price implies an upside of 12.9%.

Shares of EID Parry, however, rose as much as 9.6%—the most since July this year—to Rs 366 apiece. That's also the highest since January 2018. Of the three analysts tracking this company, two have a ‘buy' recommendation and one suggests a ‘hold'. The average of Bloomberg consensus 12-month target price implies an upside of 14.1%.

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