Shares of Niva Bupa Health Insurance Company Ltd. declined sharply by 10.05% on Monday, June 2, to ₹83.01 after a significant block deal took place in the pre-market window involving 56 lakh shares. This drop came in the wake of earlier reports suggesting a major stake sale by key shareholders.
As per CNBC-TV18, Fettle Tone and Krishnan Ramchandra were expected to pare a combined 7.2% stake in the company through block deals. The offer price for the deal was set at ₹82 per share, representing a steep 11% discount to Friday’s closing price. At that offer price, the total transaction value comes to ₹1,082 crore.
The sell-off appears to be a part of a planned exit, as the March quarter shareholding pattern showed that promoters held a 55.98% stake in Niva Bupa. The sharp discount and large size of the transaction weighed heavily on investor sentiment, triggering the steep fall in share price.
Market participants will be closely watching any further movements in stakeholding or promoter activity as the stock tries to stabilize post-deal.
