Bajaj Consumer Care shares rallied as much as 20 per cent, rebounding from its previous day's fall of 15 per cent, on the Bombay Stock Exchange on Wednesday after institutional investors acquired more than 20 per cent stake from the promoters of the Bajaj group company. The company intends to use fund proceeds to pay off debt and remove the pledge on stake from the banks.
On Tuesday, Bajaj Resources, a promoter of Bajaj Consumer Care, sold around 22 per cent stake in the company for Rs 628 crore through an open market transaction. As of September quarter, Bajaj Resources held 59.9 per cent stake in the personal products company.
According to data available with exchange, Bajaj Resources sold 3.22 crore shares, or 22 per cent equity stake, of Bajaj Consumer Care at an average price of Rs 194.56.
A host of mutual fund houses, including Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Steinberg India Emerging Opportunities Fund, were among the buyers of shares.
Boosted by the development, Bajaj Consumer Care share price gained as much as 19.99 per cent to touch intraday high of Rs 234.65 apiece on the BSE, after opening higher at Rs 221.25 against previous close level of Rs 195.55.
On the National Stock Exchange (NSE), stocks of Bajaj Consumer Care were trading 16.97 per cent higher at Rs 238.20. The scrip touched an intraday high of Rs 242.70 after opening higher at Rs 225.
In the last two sessions, the stock has tumbled 19 per cent, as compared to 1 per cent gain in S&P BSE Sensex, after it reported a disappointing set of numbers for the quarter ended September 2019.
Earlier in March, promoter groups of Bajaj Consumer Care offloaded 6.85 per cent stake in the firm for about Rs 320 crore through an open market transaction.
The promoters included Bajaj Resources Ltd, KNB Enterprises LLP and SKB Roop Commercial LLP.
Edited by Chitranjan Kumar