Aditya Birla Fashion stock crashes 7% after massive Rs 289 crore stake sale
Shares of Aditya Birla Fashion and Retail Ltd. (ABFRL) plummeted sharply on Tuesday, January 20, following a substantial block deal that transpired. The transaction involved a 3.57 percent stake, valued at nearly Rs 289 crore, and sparked a sell-off in the stock. Earlier reports had hinted at potential stake sales in two Aditya Birla Group firms, but specifics remained unclear until the trades took place.
On Monday, January 19, CNBC-TV18 reported that block deals were likely in Aditya Birla Fashion and Retail Ltd. and Aditya Birla Lifestyle Brands Ltd. The exact investor behind the planned exit was not identified at the time.
The following day, a single large transaction saw 4.35 crore shares—equivalent to 3.57 percent of ABFRL’s equity—change hands. The shares were sold at an average price of Rs 66.4 each, totaling nearly Rs 289 crore. Citigroup Global Markets Mauritius Pvt Ltd. was later confirmed as the institution behind the Rs 289 crore (approximately $32 million) block deal, offloading up to 3 percent of its stake at a floor price of Rs 65.78 per share. The sudden surge in trading volume created strong selling pressure. ABFRL’s stock fell nearly 7 percent, closing around Rs 67, after hitting an intraday low of 8 percent. Meanwhile, Aditya Birla Lifestyle Brands Ltd. also saw significant activity, with about 2.8 percent of its equity traded in a separate large deal. In that transaction, an institutional investor sold up to 3 percent of its stake for around $43 million, at a floor price of Rs 106.14 per share. The identities of the buyers and sellers in both deals remain undisclosed.
The block deals led to a sharp decline in ABFRL’s share price, making it one of the worst performers in early trading. The transactions involved significant stakes in both Aditya Birla Fashion and Retail Ltd. and Aditya Birla Lifestyle Brands Ltd., with combined values exceeding $75 million. The sudden increase in trading activity contributed to the downward pressure on the stocks.
