M&M promoter group entity sells 0.7% stake, Tata Chemicals gains 11%, more

Promoter entity sells 0.75% in M&M

Prudential Management & Services, a promoter group entity, on Thursday, offloaded 0.75 per cent stake in Mahindra & Mahindra (M&M) via bulk deals. 

It sold 9.3 million shares at Rs 1,912 per piece to raise Rs 1,778 crore, stock exchange data showed. Shares of M&M last closed at Rs 1,971. Shares of M&M fell 3.7 per cent in secondary market trading to finish at Rs 1,896. 

Market players said the stock fell as investors feared more share sales by PMSL. After this, PMSL will have a 10.89 stake in M&M, while the overall promoter holding will fall to 18.57 per cent. A day earlier, the company had said PMSL had no intention to sell more stake. 

“Post transmission of shares of PMSL held by the former Chairman of M&M, Late Keshub Mahindra, to his family members, the family is looking for liquidity for specific needs, and hence proposes to sell a small number of shares held by PMSL in M&M,” M&M had said in a stock exchange filing.

Tata Chemicals gains 11%

Shares of Tata Chemicals rallied more than 11 per cent on Thursday, extending their month-to-date gain to nearly 40 per cent.

Shares of Rallis India, a subsidiary of Tata Chemicals, also rallied 13 per cent. Other Tata group firms also rallied, with Tata Power gaining 7.7 per cent, Tata Steel 3.7 per cent, Tata Technologies 5.5 per cent and Nelco 6.4 per cent. The gains come amid growing optimism that Tata group stocks will benefit from the listing of Tata Sons.

The Reserve Bank of India has classified Tata Sons as an upper-layer non-banking financial company, making it mandatory for the company to list itself on the exchanges by September 2025. Tata Chemicals is seen as the biggest beneficiary as it has a 3 per cent stake in Tata Sons, the value of which is pegged at Rs 21,000 crore. After this month’s rally, Tata Chemicals’ market capitalisation has surged to Rs 33,500 crore.

NLC India offer for sale subscribed 1.9 times

The offer for sale (OFS) in state-owned miner NLC India garnered 182 million bids, nearly two times the 97 million on offer. Most of the bids came at Rs 217 per share as against the floor price of Rs 212. Shares of NLC fell 3.75 per cent to close at Rs 218.20 on the Bombay Stock Exchange.

Through the OFS, the government divested its 7 per cent stake in the company to mop up around Rs 2,100 crore. At the end of the December 2023 quarter, it held a 79.2 per cent stake. Since April 2023, the government has mopped up nearly Rs 15,000 crore by divesting minority stakes in listed public sector undertakings.

Mukka Proteins gains 50% on debut

Shares of Mukka Proteins, an aqua feed producer, surged more than 50 per cent during their trading debut on Thursday. The stock closed at Rs 42.30, up Rs 14.30, or 51 per cent, over its issue price of Rs 28. Through the initial public offering (IPO), Mukka raised Rs 224 crore in fresh capital to fund its working capital and invest in an associate firm. Mukka’s IPO was subscribed 137 times. At the last close, Mukka was valued at Rs 1,268 crore. During the six-month period ended September 2023, the company clocked a net profit of Rs 33 crore on revenues of Rs 606 crore.

JG Chemicals booked 27.78x on last day 

The IPO of JG Chemicals was subscribed 27.78 times on the final day of bidding on Thursday. The Rs 251.2 crore IPO received bids for 226,911,245 shares against 8,168,714 shares on offer, according to data available with the NSE. The portion for non-institutional investors received 46.32 times subscriptions while the quota for qualified institutional buyers subs­cribed 32.09 times, and the category for retail individual investors attracted 17.43 times subscriptions.