Bata India Ltd. , a prominent footwear manufacturer and retailer, witnessed a significant block trade on the National Stock Exchange (NSE) recently. The transaction involved approximately 246,027 shares of the company changing hands at a price of Rs. 1,232.50 per share.

Block Trade Details

The block trade, which refers to a large, privately negotiated securities transaction, was executed on the NSE and amounted to a total value of Rs. 30.32 crore. This substantial transaction highlights the continued interest in Bata India's shares among institutional investors or large shareholders.

Market Implications

Block trades of this magnitude often attract attention in the market as they can potentially signal shifts in institutional holdings or reflect significant investor sentiment towards the company. However, it's important to note that the specific reasons behind this particular trade and the identities of the involved parties have not been disclosed.

About Bata India Ltd.

Bata India Ltd. is one of India's leading footwear manufacturers and retailers, known for its wide range of shoes catering to various segments of the market. The company has a strong presence across the country with a network of retail stores and a growing e-commerce platform.

While this block trade represents a notable market activity for Bata India, investors and market analysts will likely be watching closely for any potential impact on the company's stock price and trading volumes in the coming days.

Bata India , a leading footwear manufacturer and retailer, has responded positively to Prime Minister Narendra Modi's announcement of potential GST reforms that could benefit the footwear industry. The proposed changes, revealed during the Prime Minister's Independence Day speech, include a reduction in the GST rate from 12% to 5% for footwear priced below Rs 1,000.

Industry Impact and Bata's Perspective

Gunjan Shah, CEO of Bata India, welcomed the announcement, highlighting its potential to stimulate consumption and aid recovery in the sub-Rs 1,000 segment. This price range is particularly significant as it represents 80-85% of the footwear industry in India.

Shah emphasized the importance of these reforms, especially for middle-class and mass-market consumers who have faced economic pressure in the post-Covid era. He stated, "The reforms are needed for middle-class and mass-market consumers facing pressure post-Covid."

Historical Context

The footwear industry experienced a significant setback when the GST rate for sub-Rs 1,000 footwear was increased from 5% to 12%. This change had a notable impact on industry volumes, including Bata's sales:

• Bata's sub-Rs 1,000 category contribution dropped from 47% to 37% of sales following the GST rate increase.

Proposed GST Reforms

The announced GST reforms aim to simplify the current five-slab structure, proposing a new system with three slabs:

1. 5%
2. 18%
3. 40%

These changes are expected to provide relief to both consumers and the footwear industry, particularly in the mass-market segment.

Bata India's Current Performance

While welcoming the potential GST reforms, Bata India continues to adapt to the evolving retail landscape:

• The company reported double-digit contribution from online sales through its omnichannel strategy.
• Bata India shares traded 1.06% lower at Rs 1,129.70 on the NSE at the time of reporting.

As the industry awaits the implementation of these proposed GST reforms, companies like Bata India are optimistic about the potential boost to the footwear market, particularly in the crucial sub-Rs 1,000 segment that caters to a large portion of Indian consumers.