Amara Raja Batteries shares tumble most in seven months on large block deal

Shares of Amara Raja Batteries Ltd tumbled 6% in early deals today after 14% equity changed hands in a block deal. The Amara Raja stock slipped the most in seven months to Rs 643.20 against the previous close of Rs 684.85 on BSE. The names of buyers and sellers in the deal were not known at the time of writing this report.  

As per reports, Clarios ARBL Holding LP, a key foreign investor in Amara Raja Batteries was likely to sell its entire 14 per cent stake via a block deal. Market cap of Amara Raja fell to Rs 11,136.98 crore.  

A total of 21.54 lakh shares changed hands amounting to a turnover of Rs 141.44 crore. The scrip logged the highest turnover on BSE.  

The stock hit a 52 week high of Rs 708.45 on July 6, 2023 and a 52 week low of Rs 461.65 on July 27, 2022.  

In terms of technicals, the relative strength index (RSI) of Amara Raja stands at 60, signaling it's trading neither in the overbought nor in the oversold territory. Amara Raja stock has a one-year beta of 0.7, indicating very low volatility during the period. Amara Raja shares are trading lower than the 5 day, 10 day, 20 day but higher than the 50 day, 100 day and 200 day moving averages.    

The floor price of the block deal was likely to be Rs 651 per share. This marks a discount of around 5 percent compared to the previous close of Rs 684.85 on BSE. Clarios ARBL Holding, which is a stakeholder in Amara Raja under the foreign direct investment route, owns 2.39 crore shares or 14 percent stake, as per the shareholding pattern shared with the stock exchanges. 

Amara Raja Batteries Limited is a manufacturer of lead-acid storage batteries for industrial and automotive applications in the Indian battery industry. The company's industrial battery division is the supplier to telecom service providers, telecom equipment manufacturers, the uninterruptible power supply (UPS) sector (original equipment manufacturers (OEM) and replacement), Indian railways and to the power, oil and gas, among other industry segments. The company's automotive battery division manufactures automotive batteries under the brands, AMARON and PowerZone, which are distributed through its pan-India sales and service retail network.  

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