KPR Mill Ltd Share Price Plunged 7% After 3.2% Equity Changes Hands Via Block Deal

Shares of KPR Mill Ltd. fell as much as 7 per cent to hit an intra-day low of Rs 1,140.10 on Wednesday, May 21, after a heavy trade took place in the stock at the start of the early trading session.

As many as 1.1 crore shares, or 3.2 per cent of the company's outstanding equity changed hands in the block deal, according to data available. The average price, official sellers and buyers in the transaction are yet to be known.

Reportedly, the total offer size stands at Rs 1,195.6 crore, with a floor price of Rs 1,107 per share, a 10 per cent discount to its last closing price.

IIFL Capital Services Ltd. is the designated broker for the block deal, as per media reports. Meanwhile after this transaction there is now a 90-day lock-in period for the sellers.

At the end of the March quarter, KPR Mill promoters KP Ramasamy, KPD Sigamani and P Nataraj held 20.34 per cent stake in the company each, as per Bombay Stock Exchange (BSE) data.

The company boasts of a market capitalization of Rs 42,000 crore reported a 4 per cent rise in revenue in the March quarter to Rs 1,769 crore from the previous year, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) was flat, posting a 0.7 per cent dip to Rs 333.1 crore from the same period last year.

Its EBITDA margin in the fourth quarter contracted by nearly 100 basis points to 18.83 per cent from 19.77 per cent during the same period in the previous year. Its net profit declined 4 per cent to Rs 204 crore from Rs 213 crore in the year-ago period.

As of 10:13 am, the shares of KPR Mill were trading at 5.7 per cent lower at Rs 1,159.35. Until May 20 closing, the stock had rallied over 15 per cent in the previous month.