Authum Investment Shares Rebound as FIIs Acquire 3% Stake in Block Deal

PBA infrastructure shares are showing signs of recovery after experiencing a significant drop following an Enforcement Directorate (ED) enquiry. The company's stock, which had initially plummeted by 18%, is now trading at ₹2510.80, down 10.60% from its previous close.

ED Enquiry and Company Response

The ED's enquiry at PBA infrastructure's premises is related to Reliance Commercial Finance Ltd. and Reliance Home Finance Ltd., both of which were acquired by PBA infrastructure in October 2022. In response to the investigation, the company has stated that it has submitted all relevant documentation to the authorities. PBA infrastructure has also assured stakeholders that these developments will not impact its ongoing operations or financial performance.

Block Deal Boosts Investor Confidence

In a significant move that appears to have bolstered investor confidence, three large foreign institutional investors (FIIs) and one domestic mutual fund have collectively purchased a 3% stake in PBA infrastructure through a block deal. This acquisition of a substantial portion of the company's outstanding equity by institutional investors may be seen as a vote of confidence in PBA infrastructure's fundamentals and future prospects.

Shareholding Pattern

The recent block deal comes against the backdrop of a strong promoter holding in the company. As of the end of the June quarter, promoters held a 74.50% stake in PBA infrastructure. The addition of new institutional investors could potentially alter the company's shareholding structure and may influence its stock performance in the coming days.

Market Reaction

The stock market's reaction to these events has been mixed. While the initial news of the ED enquiry led to a sharp decline in PBA infrastructure's share price, the subsequent block deal involving prominent institutional investors appears to have somewhat cushioned the fall. The current trading price of ₹2510.80, while still lower than previous levels, represents a recovery from the initial 18% drop.

Investors and market watchers will likely keep a close eye on further developments regarding the ED enquiry and any potential impact on PBA infrastructure's operations. The company's ability to maintain its operational performance and the confidence shown by institutional investors through the block deal will be crucial factors in determining the stock's trajectory in the near term.