A block deal worth a whopping ₹5,506 crore hit the counters of Bajaj Finserv on June 6 wherein promoter entities Bajaj Holdings and Jamnalal Sons were the likely sellers.
As many as 2.86 crore shares, equivalent to a 1.79% stake in the non-bank finance company were sold through the block deal. The transaction was executed at an average price of ₹1,925 apiece, a marginal discount from the last close.
Buyers and sellers involved in the transaction could not be immediately identified. That said, Moneycontrol had earlier reported that promoter group entities Bajaj Holdings and Jamnalal Sons were looking to trim their stake in the NBFC company by offloading a 1.58% equity through block deals, targeting a valuation of ₹4,750 crore.
The report further added that there also existed an upsize option of around ₹1,080 crore, which if executed, could take the combined block deal size to nearly ₹5,830 crore.
As per the company’s latest March shareholding data, the promoter group held a 60.64% in Bajaj Finserv.
The block deal left shares of Bajaj Finserv in jitters as the stock swung between gains and losses since trade began on June 6. Trading volumes in the counter, however, surged as 14 lakh shares changed hands in the initial minutes of trade, already nearing the one-month daily traded average of 15 lakh shares.
On the flipside tough, shares of subsidiary Bajaj Finance soared over 4% in trade. With this, the stock was also among the biggest gainers on the Nifty 50 index.
The surge in the counter was also fuelled by the Reserve Bank of India's decision to deliver a 50 basis point cut in repo-rate, higher than what the markets anticipated.
A cut in repo rate is expected to boost demand for housing and automobile, which bodes well for non-bank finance players like Bajaj Finance.
