Stock Of The Day: Sundaram Clayton Promoter Pares Stake—Key Levels To Watch
After this transaction, the promoter and promoter entities' stake in the company fell to 67.45% from 74.45%. Srinivasan's holdings have declined to 4.78% from 11.78%.
Sundaram Clayton Ltd. promoter Venu Srinivasan sold a 7% stake in the company on Thursday for Rs 175 crore through an open market transaction.
Srinivasan sold 14,16,247 shares, according to bulk deal data on the National Stock Exchange. The shares were disposed of at an average price of Rs 1,240 apiece, taking the deal value to Rs 175.61 crore.
Shares of Sundaram Clayton were trading 1.79% higher at Rs 1,279 per share, compared to a 0.61% decline in the NSE Nifty 50 at 10:17 a.m.
Key Levels To Watch
Support level: Rs 1,204 per share (two-day low).
Resistance level: Rs 1,404 per share (four-day high).
Business Outlook
In 1979, Srinivasan took over as chief executive officer of the auto component manufacturer, which is the holding company of TVS Motor Co. He is also the chairman emeritus of TVS.
After this transaction, the promoter and promoter entities' stake in the company fell to 67.45% from 74.45%. Srinivasan's holdings have declined to 4.78% from 11.78%. Other key shareholders of the company are: VS Trust—in which Srinivasan is trustee—at 51.02% and Sundaram Finance Holdings Ltd. at 7.49%.
SBI Mutual Fund snapped up 7.74 lakh shares from Srinivasan's stake sale. Veteran investor Govindlal Mansukhlal Parikh acquired 5.35 lakh shares, according to an exchange filing.
The stock was purchased at an average price of Rs 1,240 per share as per NSE, valued at Rs 162 crore. The buyers of the rest of the block could not be ascertained.
Recently Sundaram Clayton's board approved the re-appointment of Srinivasan as chairman emeritus and managing director for a period of five years, effective May 23, 2024, in a special resolution.
The company reported a revenue of Rs 497 crore in the third quarter of fiscal 2024, compared to Rs 298 crore in Q2 FY24. Profit stood at Rs 17 crore during the October-December period, as against Rs 25 crore in the previous quarter.