Amara Raja stock falls 6.5% on block deals

Shares of Amara Raja Batteries fell over 6.5 per cent to ~732 on the National Stock Exchange (NSE) in intraday trade on Tuesday, before closing at ~735.45. The decline was mainly on account of nearly 30 million equity shares of the battery maker changing hands.

The data showed that 29.6 million equity shares, representing 17 per cent of total equity of Amara Raja Batteries, changed hands on the NSE. As many as 33.8 million equity shares, representing 19.8 per cent of the company’s total equity, changed hands on the NSE and the BSE combined, the exchanges data showed. According to the bulk deal data, Clarios ARBL Holding sold 17.08 million share aggregating ~1,276.3 crore. Among buyers of the stock were Ghisallo Master Fund (~104.4 crore), Integrated Core Strategies Asia (~130.6 crore), and Morgan Stanley Asia Singapore (~134.7 crore). The average transaction price for these deals was ~746-747 per share.

According to media reports, Clarios was to sell over 17 million shares for an aggregate of about $170 million on Tuesday. The floor price for the same had been fixed at ~746 per share.

As of March 31, 2021, Clarios held 41 million shares, or a 24 per cent stake, in Amara Raja, the shareholding pattern data showed. In April 2019, Amara Raja had announced the termination of its 22-year partnership with Johnson Controls Group (now Clarios) of the US, stating that all critical technologies had been fully absorbed.