A block deal involving 37 lakh shares, translating to a 3.4 percent stake in Concord Biotech changed hands in a block deal on May 28. The transaction, valued at Rs 519 crore, was done at a floor price of Rs 1,401 apiece.
Shares of Concord Biotech slumped 6 percent after the deal. It did recoup some losses, but at 10.07 am, was still trading near 4 percent lower at Rs 1,386.75 on the NSE.
Volumes in the counter also skyrocketed after the block deal as 46 lakh shares changed hands on the exchanges, a meteoric spike as compared to the one-month average of 61,000 shares.
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Moneycontrol could not immediately ascertain the parties involved in the transaction. However, CNBC-TV18 reported on May 27, citing sources, that one of the company's shareholder, Ontario Inc was looking to offload shares worth Rs 468.40 crore.
According to the biopharma and API company's March quarter shareholding data, Ontario Inc owned a 5.39 percent stake. The CNBC-TV18 report also stated that the balance stake following the block deal could have a lock-in period of 90 days before Ontario Inc can pare any further equity.
Concord Biotech is backed by ace investor Rakesh Jhunjhunwala's family, which holds around 24 percent stake in the company.
Shares of the company made their debut on the bourses in August last year and since then, have delivered around 53 percent returns. The stock had listed on the exchanges at a premium of 21 percent to its issue price on August 18, 2023.
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