A surprising move in the Indian stock market has caught the attention of investors. Arihant Capital Markets, a financial services company, has purchased over 2 crore equity shares of Davangere Sugar Co. Ltd, a diversified agro-industrial company, through a bulk deal. This significant investment has led to a 10% jump in Davangere Sugar's share price, leaving investors wondering what's next.
Arihant Capital bought 2,16,46,910 equity shares of Davangere Sugar at an average trade price of ₹4.27 apiece, marking the deal at over ₹9.24 crore. Additionally, the company sold 7,90,498 equity shares at an average trade price of ₹4.04 apiece, amounting to ₹31.93 lakh.
After the bulk purchase, Davangere Sugar's shares jumped over 10% during the stock market session, hitting an intraday high of ₹4.46. The shares closed 9.43% higher at ₹4.41, compared to the previous market close levels.
Davangere Sugar's shares have lost over 20% in the last one-year period and have dropped 21.95% on a year-to-date (YTD) basis. However, the company's shares have delivered a 19.84% return on investment in the last one-month period and are trading 15.75% higher in the last five sessions.
Davangere Sugar's promoters have recently raised ₹150 crore in funding to cut down the company's debt and boost profitability. The company is focusing on ethanol production and sustainable development, which may lead to long-term growth.
Remember, this is a perspective, not a prediction. Investors should do their own research and consult with certified experts before making any investment decisions.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram