 "Dream run halted; Heritage Foods stock hits second straight lower circuit")
Shares of Heritage Foods were locked at the lower circuit for the second straight day, down 5 per cent at Rs 627.30 on the National Stock Exchange (NSE) on Wednesday at 11:19 am amid heavy volumes. With today’s fall, the stock of dairy products company has slipped 14 per cent from its record high of Rs 727.35 touched on Monday, June 10.
A combined 3.37 million equity shares representing 3.6 per cent of total equity of Heritage Foods changed hands on the NSE and BSE. There were pending sell orders for a combined 1.1 million shares on these exchanges, the data shows.
Meanwhile, between May 23 and June 10, in 12 trading days, the stock price of Heritage Foods more than doubled or zoomed 104 per cent following the news - Chandrababu Naidu was set to become Andhra Pradesh Chief Minister for fourth term after Telugu Desam Party’s (TDP's) landslide victory.
Naidu's TDP, in alliance with Pawan Kalyan's Jana Sena Party and the Bharatiya Janata Party (BJP), secured a majority in the 175-member Assembly, boosting investors' confidence.
However, after a sharp run-up in the stock price of Heritage Foods, the exchanges revised the price band of the scrip from 20 per cent to 10 per cent with effect from June 6 and further to 5 per cent from June 11.
According to disclosure made by Heritage Foods, on June 4, DSP Trustee Private Limited (DSPTPL) sold 1.035 million or 1.12 per cent stake in the company via open market. The names of the buyers were not ascertained immediately.
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DSPTPL is the Trustee for the schemes launched by DSP Mutual Fund and DSP Alternative Investment Fund, for which DSP Asset Manger Private Limited acts as investment manager.
One scheme of DSPMF viz. DSP Small Cap Fund sold 1.035 million shares of Heritage Foods on June 4, due to which its shareholding in the company decreased to 2.7 per cent of the paid-up capital of the company, DSPTPL said.
As on March 31, 2024, DSP Small Cap Fund (5.24 per cent) and Kotak Small Cap Fund (4.77 per cent) held more than 4 per cent stake in Heritage Foods, the shareholding pattern data shows.
The Heritage Group was founded in 1992 by TDP Chief Shri Nara Chandrababu Naidu, with three-business divisions viz., dairy, retail and agri under its flagship company Heritage Foods. Chandrababu Naidu's wife, Bhuvaneswari Nara, and son, Nara Lokesh, hold 24.37 per cent and 10.82 per cent stakes in Heritage Foods, respectively.
Heritage Foods has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). Heritage Foods' milk and milk products, such as Curd, Ghee, Paneer, flavoured milk, among others, are consumed by more than 1.5 million households in 11 states across India.
The company has introduced value-added products, which boosted its overall revenue. Its ice cream/frozen dessert is witnessing rapid growth, and the company aims to expand in existing markets across channels and drive innovation.