Sapphire Foods India’s share price rose more than five percent after the company’s 68.2 lakh shares i.e. 10.7 percent equity changed hands in a block deal window on Thursday, confirming CNBC-TV18’s November 15 report.
The development comes a day after the KFC and Pizza Hut operator informed the stock exchanges about its intent to sell up to 31.77 lakh equity shares out of its shareholding of 62.07 lakh shares in one or more tranches by December 21, 2022.
A block deal is a single trade having quantity greater than or equal to 500,000 shares or value greater than or equal Rs 5 crore, executed through block deal window. Traders are allowed to enter the block deal orders only during the first 35 minutes of the continuous trading session i.e. from 9:15 am to 9:50 am.
Sources had earlier said that the floor price for the deal was likely Rs 1,330 per share with Sapphire Foods Mauritius International, Goldman Sachs Asset management (WWD Ruby) and QSR Management Trust looking to offload chunks of their shares.
However, earlier this week, people with knowledge of the matter told CNBC Awaaz that Samara Capital and a large PE fund were likely to sell 30 lakh shares of Sapphire Foods through a large block deal. They said the deal size was likely worth Rs 400 crore. Spark Capital is reportedly the broker of the deal.
On November 15, dealers had indicated to CNBC-TV18 that a leading foreign investor was looking to pare a stake in the company. Based on the company's September quarter shareholding pattern, foreign investors held a 12.6 percent stake.
Meanwhile, Sapphire Foods returned to profitability during the September quarter, compared to a net loss during the same period last year. However, a drag on its Sri Lanka business impacted its operating performance.
At 10:04 am, Sapphire Foods shares were trading at Rs 1,387.75, up 2 percent from the last closing price on BSE.
First Published: Dec 15, 2022 10:53 AM IST
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