Voltamp Transformers , a key player in the transformer manufacturing sector, has experienced a decline in its share price following a significant bulk deal on the National Stock Exchange (NSE). Citigroup purchased 57,000 shares of Voltamp Transformers for Rs 43.00 crore at Rs 7,605.00 per share, representing a 2% discount to the previous closing price.

Bulk Deal Details

The transaction involved several domestic institutional investors, including:

The total value of the bulk deal amounted to Rs 364.00 crore.

Market Impact

Following the transaction, Voltamp Transformers' stock closed at Rs 7,508.75, down 3.42% for the day. The stock has experienced a significant correction, declining 40% over the past 12 months and currently trading 47% below its 52-week high of Rs 14,260.30.

Long-term Performance

Despite recent declines, Voltamp Transformers has delivered impressive long-term returns:

• 630% over five years
• 190% over three years

About Voltamp Transformers

Voltamp Transformers is a Vadodara-based transformer manufacturer with 61 years of operations. The company has a strong presence both domestically and internationally, with 70,000 installations to its credit. Voltamp Transformers specializes in the manufacture of transformers, which are crucial components in power distribution systems, serving various industries and infrastructure projects.

Voltamp Transformers Ltd. is set to witness a significant change in its shareholding structure as promoter Kunjal Patel prepares to sell a substantial portion of their stake through a block deal. The transaction, valued at approximately $67 million, involves the sale of up to 7.88 lakh shares, representing about 7% of the company's equity.

Block Deal Details

• Shares on Offer: Up to 7.88 lakh shares (approximately 7% equity)
• Floor Price: ₹7,600.00 per share
• Last Closing Price: ₹7,777.50
• Placement Agent: Nuvama Wealth Management
• Transaction Schedule: September 8-9

The floor price for the block deal has been set at ₹7,600.00 per share, which is lower than the last closing price of ₹7,777.50. This pricing strategy could potentially attract institutional investors looking for a discounted entry into the stock.

Promoter Stake and Lock-up Period

Kunjal Patel currently holds about a 37.8% stake in Voltamp Transformers. Following the transaction, their shareholding is expected to decrease significantly. To ensure market stability and demonstrate confidence in the company's future prospects, the deal includes specific lock-up provisions:

• Two-year lock-up period for the sold shares
• One-year lock-in for any unsold portion of the offered shares

These lock-up agreements are designed to prevent immediate resale of the shares and maintain investor confidence.

Recent Financial Performance

Voltamp Transformers recently reported its financial results for the June quarter:

Despite the marginal decline in revenue and EBITDA, the company's management highlighted some positive developments:

• 33% year-on-year growth in order volumes since April 1
• 17% value growth in orders
• Revenue visibility of ₹1,685.00 crore for the current fiscal year

Market Reaction

The news of the impending block deal appears to have had a slight impact on the company's stock price. Voltamp Transformers' shares closed 1.18% lower at ₹7,768.00 in the most recent trading session.

The upcoming block deal represents a significant development for Voltamp Transformers and its shareholders. While the sale may lead to a short-term impact on the stock price, the lock-up provisions and the company's strong order book could help maintain investor confidence in the long run.