Wednesday, December 31: Shares of Privi Speciality Chemicals Ltd came under sharp selling pressure on Wednesday, plunging over 9% intraday on the NSE, after reports emerged of a large stake sale via block deal.
The stock was trading around Rs 2,900, down more than 9%, as investors reacted to the potential supply overhang in the counter.
Block deal trigger behind the fall
According to sources cited by CNBC-TV18, a shareholder of Privi Speciality Chemicals is likely to sell up to 6.32% stake in the company through a block deal. The total size of the transaction is estimated at around Rs 700 crore.
The floor price for the deal has been fixed in the range of Rs 2,835–2,850 per share, which implies a discount of about 11.14% to the current market price. Such a steep discount typically puts immediate pressure on the stock, as traders factor in near-term downside and increased supply.
Promoter stake sale history adds to caution
Market participants are also recalling that promoter entities had sold a combined 4.09% stake in Privi Speciality Chemicals in June 2025 for around Rs 330 crore through open market transactions. The recurring stake dilution has made investors cautious, especially in the short term.
The promoters involved in the earlier sale included Bhaktavatsala Rao Doppalapudi, Vijaykumar Doppalapudi, Vinaykumar Doppalapudi Rao and Vivira Investment and Trading, as per NSE bulk deal data.
Long-term fundamentals remain intact
Despite today’s sharp fall, brokerage commentary on the stock remains positive. Motilal Oswal Wealth Management recently included Privi Speciality Chemicals in its top 10 stock picks for 2026, citing strong growth prospects in the global aroma chemicals market, which is expected to reach $9.2 billion by 2030.
The brokerage has highlighted capacity expansion plans and the proposed merger with Privi Fine Sciences, which are expected to strengthen the company’s green chemistry and high-margin portfolio. Motilal Oswal has valued the stock at Rs 3,960, implying nearly 21% upside from current levels.
Bottom line
Privi Speciality Chemicals shares are down sharply not due to business fundamentals, but because of near-term selling pressure linked to a large block deal at a discount. Investors are watching closely to see how the stake sale plays out and whether the stock stabilises once the transaction is absorbed by the market.
