Amara Raja Batteries dips 6% on huge block deals

Shares of Amara Raja Batteries declined 6 per cent to Rs 736.70 on the National Stock Exchange (NSE) in intra-day trade on Tuesday after nearly 30 million equity shares of the battery maker changed hands on the counter.

At 09:48 am, the stock was trading 5 per cent lower at Rs 743.95, as compared to a 0.37 per cent rise in the Nifty 50 index. Around 29.6 million equity shares, representing 17 per cent of the total equity of Amara Raja Batteries have changed hands on the NSE. A combined 33.8 million equity shares, representing 19 per cent of the total equity of the company changed hands on the NSE and BSE combined, the exchanges data shows. The names of buyers and sellers were not ascertained immediately.

According to a media report, Clarios was to sell 17.1 million shares for an aggregate of $174 million today. The floor price for the same had been fixed at Rs 746 per share.

As of March 31, 2021, Clarios ARBL Holding LP held a 41 million or 24 per cent stake in Amara Raja Batteries, the shareholding pattern data shows.

Meanwhile, the stock of Amara Raja Batteries was trading lower for the second day in a row, down 7 per cent, amid concerns of weak demand visibility and lead price inflation which can impact near term performance. The company reported a 33 per cent year-on-year (YoY) jump in its revenue at Rs 2,103 crore for the quarter ended March 2021 (Q4FY21). Profit before tax grew 46 per cent YoY to Rs 259 crore.

Analysts at Motilal Oswal Securities maintained a Neutral rating on the stock as expectations of good earnings growth balances out the increasing threat posed by lithium technology to its Auto and Industrial business.