Privi Speciality Chemicals: Why did the stock crash 12%?

Synopsis: Privi Speciality Chemicals fell 13% on December 31, 2025, after a major block deal of 38.8 lakh shares (9.93% of equity) was traded at an average price of Rs. 2,799, exceeding earlier expectations of a 6.3%.

Privi Speciality a leading manufacturer, supplier, and exporter of aroma and fragrance chemicals for products like soaps, detergents, shampoos, and other fine fragrances, has come into focus following the transfer of nearly 10% of its equity.

With a market capitalisation of Rs. 10,996 cr, the shares of Privi Speciality Chemicals Ltd are currently trading at Rs. 2,815 per share, declining 13% in today’s market session, making a low of Rs. 2,752, down from its previous close of Rs. 3,172.30 per share. Privi Speciality Chemicals shares dropped up to 13% on December 31, 2025, following a major block deal transaction involving nearly 10% of the company’s equity.​

A total of 38.8 lakh shares, equivalent to 9.93% of outstanding equity, were traded at an average price of Rs. 2,799 per share, resulting in a deal value of Rs. 1,086 crore. This exceeded initial expectations of a 6.3% promoter stake sale worth around Rs. 700 crore at a floor price of Rs. 2,835 to Rs. 2,850, which represented an 11.1% discount to the prior close.​

Privi Speciality Chemicals Limited is a leading Indian manufacturer and exporter of aroma and fragrance chemicals. It is recognised globally for quality and reliability. The company has achieved 31.8 million safe man-hours and received awards for occupational safety and water conservation, including the National Safety Council Certificate of Merit and the Rotary Water Award.

It demonstrates strong financial performance with a ROCE of 16.4% and a ROE of 18.4%. The company maintains a debt-to-equity ratio of 0.86, indicating a balanced mix of debt and equity financing.

Sales of the company rose 27% to Rs. 679 cr in Q2FY26 from Rs. 533 cr in Q2FY25, EBIDT surged 65% to Rs. 182 cr, and net profit jumped 110% to Rs. 90.2 cr. EPS increased 110% to Rs. 24.02 from Rs. 11.42.

As of Q2FY26, promoters of the company hold 69.89%, and FII’s decreased their stake from 1.47% in Q1FY26 to 1.33% in Q2FY26. DII’s rose stake from 3.90% to 4.55%, Public holding stands at 24.24%.

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