Radhakishan Damani, through his entity Derive Trading, sold a portion of his stake in VST Industries on Wednesday through bulk deals.
Details of the Sale
Damani sold about 2.62 lakh shares, which is around 1.7% of the company, at Rs 4,102 each. This sale earned him Rs 107 crore.
Current Shareholding
According to the latest data, public shareholders own 67.47% of VST Industries, while promoters hold the remaining shares. Among the public shareholders, Damani had a 34.66% stake in the company. He increased his stake by 2% during the June quarter, up from 32.7% at the end of the March quarter, based on data from Trendlyne.
About VST Industries
VST Industries manufactures and sells cigarettes and unprocessed tobacco products. The company’s brands include Total, Editions, Charms, Special, Moments, Total Active Mint, and Total Royal Twist. They have manufacturing facilities in Hyderabad and Toopran, Telangana. The company’s board will meet on July 25 to consider issuing bonus shares and will announce first-quarter results on the same day.
Recent Performance
In the March quarter, VST Industries’ revenues remained flat at Rs 300 crore due to a shift in consumer preference towards RSFT cigarettes, resulting in an 11% decline in volumes year-on-year.
Future Strategy
Brokerage Centrum Broking believes that slower growth compared to the industry might push VST to rethink its strategy. This could involve expanding its RSFT offerings, increasing its network in new states, focusing on the premium brand ‘Total,’ and investing in better trade visibility.
Market Reaction
On Wednesday, shares of VST Industries dropped by as much as 16.4% to Rs 3,899 on the NSE.
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