VST Industries freezes in 20% upper circuit as 3% equity changes hands

Shares of VST Industries were locked in the 20 per cent upper circuit at Rs 4,065.30 on the BSE on Tuesday, as of 02:10 PM. The sharp surge came as nearly 3 per cent of the company's total equity changed hands via a block deal.

The stock also hit a 52-week high and surpassed its previous high of Rs 3,859.95 touched on August 3, 2023. It had hit a record high of Rs 4,848 on January 22, 2020.

As of 12:04 PM; as many as 449,389 equity shares, representing 2.9 per cent of total equity of VST Industries, changed hands on the BSE, exchange data showed. The names of the buyers and sellers were not ascertained immediately.

Till 02:25 PM; a combined 610,064 equity shares changed hands on the NSE and BSE. There were pending buy orders for 41,252 shares on both the exchanges, data showed.

VST Industries is engaged inter alia in manufacture and trading of Cigarettes, Tobacco and Tobacco products. The company is an associate of British American Tobacco Plc, which holds 32.2 per cent stake in VST Industries.

Meanwhile, last month on December 20,2023, VST Industries said that SBI Mutual Fund, under its various schemes had purchased 116,730 shares representing 0.76 per cent of the company.

Post acquisition, SBI Mutual Fund’s stake in VST Industries increased to 5.7 per cent from 4.94 per cent, the company said.

SBI Mutual Fund held 4.41 per cent stake in VST Industries at the end of September 2023 quarter, as per the shareholding pattern data.

HDFC Mutual Fund (6.81 per cent ) and DSP Small Cap Fund (2.4 per cent) are among other mutual funds  that held more than 2 per cent stake in the VST Industries.

Meanwhile, investor Radhakishan Damani’s Derive Trading and Resorts Pvt. Ltd held 4.76 per cent stake in VST Industries.

VST is an established player in the cigarette industry with over eight decades of operations. The company is the third-largest player in the domestic market with significant presence in West Bengal, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh.

It has a vast portfolio of reputed brands such as Charminar, Charms, Special, Moments and Total in the 64 millimetre (mm) and 69 mm segments.

It has entered the 84 mm segment with its brand 'Editions'. Strong brand loyalty and adequate pricing power will continue to support the business risk profile over the medium term, as per analysts.