Amara Raja Batteries shares drop after 16% equity changes hands in a large trade

Shares of Amara Raja Batteries Ltd. dropped as much as 6 percent on Tuesday after over 16 percent of the company's total equity exchanged hands in a large trade.

As per data available on the exchanges, over 16 percent of the company's equity, worth over Rs 1,800 crore exchanged hands in a large deal at an average price of Rs 654 per share.

Buyers and sellers in this transaction are not known.

CNBC-TV18 had reported on Tuesday citing sources that Clarios ARBL Holding LP is likely to divest its entire shareholding or 14 percent stake in Amara Raja through a block deal.

Clarios planned on offloading the shares of India's second-largest automotive battery-maker on Tuesday at a floor price of Rs 651 per share.

Amara Raja caters to automotive and industrial demand for power storage, and manufactures lead-acid batteries, with Maruti Suzuki, Tata Motors, and Bajaj Auto among its clients.

The company reported a 41 percent rise in its net profit during the March quarter, while revenue from operations increased by 11 percent.

Shares of Amara Raja Batteries are trading 5.5 percent lower at Rs 646.95. The stock is correcting from its 52-week high and is currently up 12.5 percent on a year-to-date basis.