Moneycontrol
Last Updated : Jun 05, 2020 02:42 PM IST | Source: Moneycontrol.com

Britannia shares fall on report of a stake sale by Wadias, Bombay Dyeing up 15%

Promoter and promoter group held 50.63 percent stake in Britannia Industries as of March 2020.

 
 
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The share price of Britannia Industries fell 1.4 percent intraday on June 5 after a media report said the Wadias may sell around 5 percent stake in the company through block deals.

The stock was trading at Rs 3,428.05, down Rs 23.20, or 0.67 percent, on the BSE at 1238 hours though it is 64 percent up from its March lows.

Later in the day, the Wadia Group issued a statement saying there was no truth to the report.

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"The Wadia Group is looking to sell up to 5 percent stake in India's largest biscuit maker, Britannia Industries, to raise as much as Rs 4,000 crore as the Mumbai-based conglomerate is looking to take advantage of a spike in share prices since March when Indian markets had slumped to a record low," The Economic Times had reported.

The Wadias were likely to sell shares through secondary block deals in open markets, the report said, quoting sources.

According to the report, the group was expected to infuse these funds into its aviation firm GoAir and textile and real estate company Bombay Dyeing.

As a result, Bombay Dyeing and Manufacturing Company surged 15.02 percent to Rs 66.25, while Bombay Burmah Trading Corporation was up 3.64 percent at Rs 1,115.65 on the BSE.

“There is no truth, no such decision has been taken, nor any mandate given. We do not normally comment on speculation.  We are issuing this statement in the interest of good governance to prevent any speculation,"  the Wadia Group spokesperson said, reacting to the news report.
First Published on Jun 5, 2020 01:33 pm
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