Bulk Deal: 2 Stocks in focus after Nippon AIF and Morgan Stanley bought stake

Synopsis: TajGVK and Ramkrishna Forgings gained in intraday trade after bulk deals. Nippon AIF purchased 15,21,000 shares of the company at an aggregate value of approximately Rs  63.90 crores, while two trusts offloaded 25,00,000 shares valued at around Rs 105 crore. Morgan Stanley snapped up 18,75,000 shares of the company valued at around Rs 95 crore.

A bulk deal is when a big investor or institution buys or sells a large chunk of a company’s shares during normal market hours. It must be at least 0.5% of the company’s total shares, so the trade is publicly visible.

Because these deals are transparent, they often hint at what major investors are thinking. For regular investors, bulk deals act as useful signals to understand market sentiment and spot potential trends.

TajGVK Hotels & Resorts Ltd

TAJGVK Hotels and Resorts Limited is a joint venture between the GVK Group and the Indian Hotels Company (IHCL), a Tata Group company, set up in 1999. The company currently runs upmarket five-star hotels across Hyderabad, Chennai, and Chandigarh and has an association with a luxury hotel in Mumbai, the Taj brand being known for its world-class management and services.

With a market cap of Rs 2,734 crore, the shares of TajGVK Hotels & Resorts Ltd gained about 1.6 per cent in today’s trading session and reached a high of Rs 436.05. When compared to its previous day’s closing price of Rs 429.25, the shares are trading at a PE of 22.2 compared to its industry PE of 34.8. 

About the bulk deal.

Nippon India Equity Opportunities AIF stood out as one of the major buyer entities through two of their schemes. Scheme 7 acquired a total of 8,12,941 shares at an overall price of Rs 420 per share, which translated to a total investment of Rs 34.14 crore. Scheme 9, on the other hand, acquired a total of 7,08,026 shares at the same price, resulting in an overall investment of Rs 29.73 crore. The two schemes combined acquired a cumulative total of 15,20,967 shares.

On the selling side, Two promoters that is Moonshot Trust has sold 12,50,000 shares at Rs 420 per share, aggregating Rs 52.5 crores and  Starlight Trust has also sold 12,50,000 shares at Rs 420.34 per share, aggregating Rs 52.54 crores. This reveals that a total of 25,00,000 shares have been sold by two trusts, which implies that there is a planned exit or equity reshuffle, as the shares are being bought by institutional investors and not in the open market.

Ramkrishna Forgings Ltd

Ramkrishna Forgings Ltd. is a globally recognised metal forming company known for its strong capabilities in forging, machining, and fabrication. It serves a wide range of industries, such as automotive, railways, farm equipment, mining, construction, oil and gas, power, and general engineering. The company stands out through strong engineering expertise, continuous process improvement and  the adoption of advanced technologies 

With a market cap of Rs 9,351 crore, the shares of Ramkrishna Forgings Ltd gained about per cent in today’s trading session and reached a high of Rs 521. When compared to its previous day’s closing price of Rs 506.85, the shares are trading at a PE of 42 compared to its industry PE of 31.2. 

About the bulk deal.

On the buy side, Morgan Stanley Asia (Singapore) Pte purchased a large quantity of shares to the tune of 18.75 lakh shares at the price of Rs 506.70 per share. The value of the transaction has been calculated to be roughly Rs 95.01 crore.

On the sell side, Societe Generale shed 14.75 lakh shares at Rs 506.75 apiece on the same day, resulting in a sale worth approximately Rs 74.75 crores. The fact that the price points are the same on both sides indicates a smooth block deal.

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