Fast moving consumer goods major Nestle India witnessed a jump in its share price on the back of a huge block deal on the Bombay Stock Exchange (BSE).
The stock hit an intra-day high of Rs 571.95 and settled up 1.13 per cent at Rs 570.05. Around 2.87 lakh shares were recorded on the counter. The stock had settled at Rs 563.70 on Friday. On the National Stock Exchange, around 1.52 lakh shares were traded on the counter.
A dealer at an institutional brokerage house said, "There was a market buzz that a huge block deal of 2 lakh Nestle India shares was executed in afternoon trades on the BSE at Rs 570-571 per equity share. The Unit Trust of India (UTI) is said to be the seller, while Solomon Smith Barney was said to be the buyer on behalf of the company's Swiss parent."
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Meanwhile, analysts said this has been a usual feature with the Nestle India scrip. The Swiss parent has been acquiring the shares of its Indian arm through the creeping acquisition route following their attractive valuation.
In a year, a promoter can purchase equity of up to 10 per cent through open market purchases (called creeping acquisition). Analysts said the parent is mopping up the shares of its subsidiary at every fall. As on June 30, 2002, the Swiss parent's holding in Nestle India was 54 per cent, while institutions and the public held 23 per cent and 21 per cent, respectively.
For the second quarter ended June 2002, Nestle India posted a 30.4 per cent rise in net profit at Rs 58.33 crore on a 10.3 per cent increase in total income at Rs 520.22 crore.