The entities belonging to the late Gautam Kulkarni family and a part of the promoter group of Kirloskar Oil Engines Ltd have offloaded nearly 18% stake in the company for Rs 825 crore through block deals on Wednesday.
Jyotsna Gautam Kulkarni, Ambar Gautam Kulkarni and Nihal Gautam Kulkarni cumulatively sold 2,56,22,987 shares on the NSE at Rs 322 apiece. This is at a discount of about 1% to the previous closing price.
Despite such a big sale, the stock ended 20% higher on the bourse at Rs 390.05 due to strong demand from institutional investors.
In February, the Kulkarni family had announced their decision to exit from the Kirloskar Group companies to pursue independent ambitions and interests.
Jyotsna Kulkarni is the wife of late Gautam Kulkarni, and Nihal and Ambar are his sons.
Nihal Kulkarni has also resigned from the board of directors of Kirloskar Oil Engines, Kirloskar Industries, Kirloskar Americas, Navasasyam Dandekar Pvt Ltd and G.G. Dandekar Machine Works Ltd with effect from February 9, 2022.
Consequently, Jyotsna Kulkarni and her family members had said they would cease to be shareholders and promoters in the Kirloskar group companies.
The sale of stake in the market today is in lieu with the previous announcements.
Through separate deals, Franklin Templeton, Nomura Trust, Nippon India Mutual Fund, Motilal Oswal Mutual Fund, HSBC Mutual, DSP Mutual Fund, BNP Paribas, Birla Sun Life Insurance, and Max Life Insurance Company have picked up stakes in the engine oil maker.
The 9 institutional investors cumulatively bought 1,88,19,878 shares of Kirloskar Oil for Rs 606 crore.
Shares of Kirloskar Oil have been one of the best performing in the midcap space. The stock has trebled in value in the last 1 year. Despite such a significant upmove, the stock trades below the industry median valuation.
Source: Economic Times