Jhunjhunwala-Backed IKS Share Price Drop Over 3% After ₹500 Crore Block Deal

IKS Health, the health-tech service provider backed by the Jhunjhunwala family, saw around 30 lakh shares change hands in a block deal worth ₹499 crore on Thursday. This accounts for 1.75% of the company’s total equity. The investor reaction remained subdued as the shares of IKS Health traded in the red territory.

At 12:50 pm, shares of Inventurus Knowledge Solutions (IKS Health) were trading at ₹1,643.80 price level, down by 3.5% on the National Stock Exchange.

As per sources cited in a report by CNBCTV18, multiple individual investors were likely on the sell side, although the identities of buyers are not known yet. The floor price for the block deal was set at ₹1,650 per share, indicating a 2.6% discount to Wednesday’s closing price.

It is also worth mentioning that the block deal comes just a day after IKS Health's 6-month post-IPO lock-in period ended on Wednesday. Since its listing, the company has struggled to trade in the green territory, falling over 16% on the NSE, from ₹1,960 to ₹1,645 price level.

Interestingly, the shares were listed at a robust double-digit premium of 43%. While the issue price stood at ₹1,329, the shares were listed at ₹1,900. So far this year, the shares have witnessed a drop of more than 15% on the NSE.

Recently, the D-street has witnessed a deluge of block deals with promotors and marquee investors involved in stake sales. Earlier this month, the street saw a stake sale worth around ₹4,463 crore in just a single day. This also pushed the overall trading volumes in the market to new levels, increasing the daily turnover to almost ₹14 billion on June 3 (highest level since last November), as per a report by Bloomberg.

However, some D-street players also raised banners of caution on the recent trend as high valuations might be a reason behind why promoters are selling stakes.