Radhakishan Damani now owns more than 30% of VST Industries

Veteran investor and owner of D-Mart Radhakishan Damani has increased his stake in cigarette manufacturer VST Industries on Tuesday via a block deal.

Data revealed that Damani had acquired 2.22 lakh shares of the company or 1.44% of the total outstanding shares in the block deal that took place in VST Industries on Tuesday.

Damani is already the single largest shareholder in VST Industries. Based on the December quarter shareholding pattern, Derive Trading and Resorts Pvt. Ltd. and Bright Star Investments Pvt. Ltd., entities owned by Damani, held 4.76% and 25.95% stake in VST Industries respectively.

Promoters of VST Industries 32.16% of the company.

Shares of VST Industries had ended 20% higher on Tuesday after 4% equity had exchanged hands around noon in a large trade.

Another buyer in the transaction was SBI Mutual Fund, which acquired 2.25 lakh shares of the company. HDFC Mutual Fund and DSP Mutual Fund were the sellers in the block deal.

As of December, HDFC Mutual Fund held 6.81% stake in VST Industries, while DSP MF owned 2.4% via its Small Cap Fund.

VST Industries, known for manufacturing and selling cigarettes under brands like Charms and Charminar, has been experiencing a decline in market share compared to ITC in recent quarters.

VST Industries has also lagged ITC in recent quarters when it comes to cigarette volume growth.

Shares of VST Industries underperformed its largest peer ITC in 2023. While the former was largely flat, shares of ITC gained nearly 40% last year.

When compared on the valuation front, VST Industries is currently trading at 15 times financial year 2025 earnings, while ITC is trading at 26 times.