ABFRL stock crashes 7% after massive equity block deal shocks investors
Shares of Aditya Birla Fashion and Retail Ltd. (ABFRL) plummeted sharply on Tuesday, January 20, following a substantial block deal that triggered heavy selling. The sudden surge in trading volumes pushed the stock down by as much as 8 percent in early trade, making it one of the day’s biggest losers.
The sharp decline followed a single large transaction where 4.35 crore shares—equivalent to 3.57 percent of ABFRL’s total equity—were traded. The deal, valued at nearly Rs 289 crore, took place at an average price of Rs 66.4 per share. By the end of trading, the stock was down nearly 7 percent, hovering around Rs 67.
The block deal had been anticipated. A day earlier, CNBC-TV18 reported that institutional investors were likely to offload stakes in two Aditya Birla Group companies, though the exact sellers remained unnamed. For ABFRL, an undisclosed investor had planned to sell up to 3 percent of its equity through a $32-million block deal, with a floor price of Rs 65.78 per share. A similar transaction was seen in Aditya Birla Lifestyle Brands Ltd., where about 2.8 percent of its outstanding equity was traded. In that case, an institutional investor was expected to sell up to 3 percent of its stake for around $43 million, at a floor price of Rs 106.14 per share. Neither the buyers nor the sellers in either transaction have been publicly identified.
The block deals led to a noticeable drop in ABFRL’s share price, reflecting the immediate impact of large-scale equity sales. The company’s stock closed the day significantly lower, with the market reacting to the sudden movement of shares.
