Fineotex Chemical surges 29% in 2 days after Nippon India MF buys 6% stake

On December 28, 2020, Nippon India MF acquired 6.61 million equity shares of Fineotex Chemical for about Rs 30 crore through block deal on the BSE

Shares of Fineotex Chemical hit a 52-week high of Rs 62.15 on the BSE on Tuesday after rallying 15 per cent in early morning trade. The stock has now surged 29 per cent in the past two trading days after Nippon India Mutual Fund (MF) bought nearly 6 per cent stake in specialty chemicals company via open market.

On Monday, December 28, 2020, Nippon India MF acquired 6.61 million equity shares, representing 5.9 per cent of total equity of Fineotex Chemical, for about Rs 30 crore through block deal on the BSE, the exchange data shows. The domestic mutual fund bought shares for its scheme Nippon India Small Cap Fund at price of Rs 45.25 per share, data shows.

Surendra Deviprasad Tibrewala, the promoter of Fineotex Chemical, sold 7.8 million equity shares, or 7.04 per cent stake, in the company at price of Rs 45.22 per share via block deal, data shows. The names of the other buyers were not ascertained immediately.

At 09:39 am, the stock was trading 11 per cent higher at Rs 60.05 on the BSE, as compared to 0.58 per cent gain in the S&P BSE Sensex. A combined 1.9 million equity shares had changed hands on the counter on the NSE and BSE.