Voltamp Transformers Promoter to Offload 7% Stake in $67 Million Block Deal
Kunjal Patel, a promoter of Voltamp Transformers Ltd., is set to sell up to 7.88 lakh shares (about 7% equity) in a block deal worth approximately $67 million. The floor price is set at ₹7,600.00 per share, below the last closing price of ₹7,777.50. The deal includes a two-year lock-up period for sold shares and a one-year lock-in for unsold offered shares. Voltamp recently reported flat net profit of ₹79.50 crore in Q1 FY2024, with revenue slightly down at ₹423.60 crore. The company has seen 33% year-on-year growth in order volumes since April 1 and has revenue visibility of ₹1,685.00 crore for the current fiscal year.
*this image is generated using AI for illustrative purposes only.
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:
| Metric | Q1 FY2024 | YoY Change |
|---|---|---|
| Net Profit | ₹79.50 crore | Flat |
| Revenue | ₹423.60 crore | -1.1% |
| EBITDA | ₹72.70 crore | -2.8% |
| EBITDA Margin | 17.2% | - |
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.
Historical Stock Returns for Voltamp Transformers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.72% | +0.36% | -10.05% | +1.77% | -44.57% | +630.85% |
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