Shares of Amara Raja Batteries fell 6% to Rs 736.70 on the National Stock Exchange (NSE) in intraday trading on Tuesday after nearly 30 million shares of the battery maker changed hands on the counter.
At 9.48am, the stock was trading down 5% to Rs 743.95, against a 0.37% rise in the Nifty 50 index. About 29.6 million shares, representing 17% of the Amara Raja Batteries’ total capital, have changed hands on the NSE. A total of 33.8 million shares, representing 19% of the company’s total equity, changed hands on the combined NSE and BSE, according to exchange data. The names of the buyers and sellers were not immediately determined.
According to a press report, Clarios was to sell 17.1 million shares for a total of $ 174 million today. The floor price for the same had been set at Rs 746 per share.
As of March 31, 2021, Clarios ARBL Holding LP held a stake of 41 million or 24% in Amara Raja Batteries, according to shareholder structure data.
Meanwhile, Amara Raja Batteries’ stock traded lower for the second day in a row, down 7%, amid concerns over low visibility of demand and lead price inflation that may impact performance in the short term. The company announced a 33% increase in year-over-year (YoY) revenue to Rs 2,103 crore for the quarter ended March 2021 (T4FY21). Profit before tax increased 46% year-on-year to 259 crore rupees.
Motilal Oswal Securities analysts maintained a neutral rating on the stock as expectations of healthy earnings growth offset the growing threat lithium technology poses to its automotive and industrial businesses.