Shares of Ramco Industries have experienced a significant rise, jumping over 6% to ₹247 each on October 29. This increase followed the transfer of 14.1 million shares, accounting for 16.2% of the company's equity, through two large block deals. This activity is noteworthy for those engaged in share market investment.
Major share transfer details
In an official filing, Ramco Cements revealed that its board had approved the divestment of 1.4 crore shares (approximately 14 million shares) of Ramco Industries. The shares will be transferred to Rajapalayam Mills and Ramco Management, all of which, alongside Ramco Cements, are promoters of Ramco Industries.
The company confirmed that this transaction will occur as an inter-se promoter transfer among the company, Ramco Management, and Rajapalayam Mills. Importantly, once the transfer is completed, there will be no changes to the management or control of Ramco Industries. The firm has assured stakeholders that this realignment of shareholding will continue its operations.
Business profile and performance
Ramco Industries is a prominent manufacturer of building materials, including fibre-cement sheets and calcium silicate boards. Additionally, it operates in the textile-yarn sector, enhancing its diversified portfolio. The company's performance this year has been commendable, with its shares climbing 10% thus far, slightly underperforming the Nifty 50 index, which has seen a 12% rise.
In the latest quarterly results from September, foreign institutional investors (FIIs) have slightly decreased their stake to 0.96%, down from 0.98% in the previous quarter. In contrast, mutual fund holdings have remained unchanged at 2.63%. This information is vital for those interested in share market investment.
Key takeaways
For investors focusing on share market investment, the ongoing developments at Ramco Industries present a valuable opportunity to consider.
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