Why did FIIs sell 5.89% stake in just 2 days in this textile stock?

This textile stock is in focus after the Luxembourg-based Investment Company has sold 5.89 percent shares of the 22,63,574 shares they held in the company in just 2 days.

Share Price Movement

With a market capitalization of Rs. 472 Crore, the stock of Banswara Syntex Limited opened at Rs. 135.55, the same level as yesterday’s close, but after opening it made a high of Rs. 140 up 3.28 percent. 

Stake Sale By FII

Cofipalux Invest, a Luxembourg-based Foreign Institutional Investor (FII) which held 6.61 percent stake in the Company as of Q3FY25 shareholding pattern filings, yesterday sold 10,20,000 shares at an average price of Rs.130.50 worth 13.31 Crores. And on Tuesday they also had sold 10,00,000 shares in the company worth 12.16 Crore, at an average price of Rs. 121.66, reducing their overall stake to just 0.71 percent from 6.61 percent in just 2 days. The buyers of the shares in both cases are not known.

Also read: Infra stock hits 5% upper circuit after receiving ₹81 Cr order from Chennai Sewerage Board

Financial Highlights

The company reported a 12.25 percent YoY increase in revenue from Rs. 302 Crore in Q3FY24 to Rs. 339 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 1.16 percent in revenue from Rs. 343 Crore in the previous quarter.

Their Net profit saw an increase of 25 percent YoY from Rs. 8 Crore to Rs. 10 Crore for the same period. On a QoQ basis, the company reported an increase of 100 percent in Net profit from Rs. 5 Crore in the previous quarter.

About the Company

Banswara Syntex Limited, established in 1976 and headquartered in Banswara, Rajasthan, is a leading textile manufacturer specializing in yarn, fabric, and garments. With a vertically integrated setup, the company manages the entire textile value chain, including spinning, weaving, dyeing, finishing, and garment production.

Written By Abhishek Das

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