Amara Raja Shares Rebound with Marquee Funds' 7% Stake Buy

Amara Raja Batteries Limited witnessed 1.6%  increase in its share price, trading at ₹652 on July 19. This surge followed a significant transaction on the National Stock Exchange (NSE) where four lakh shares were exchanged, with six investors collectively acquiring a 7% stake in the company at an average price of ₹652.

According to bulk deal data, the investors involved in this acquisition are Nippon India Mutual Fund, Tata AIA Life Insurance Company, Kotak Mahindra Mutual Fund, BNP Paribas Arbitrage, Pinebridge India EqFund, Pinebridge Investments Asia Limited A/C PB Global Funds, and Societe Generale. 

This development holds significance as Clarios ARBL Holdings recently sold its entire stake in Amara Raja Batteries through bulk deals on July 18, divesting 2.4 crore shares, which accounted for approximately 14% of the company's stake. Consequently, the news caused  6% decline in Amara Raja share price on the previous day.

Shareholding data reveals that Amara Raja Batteries is predominantly owned by public shareholders, holding a 72% stake, while the remaining 28% is owned by the promoters. Among the public shareholders, mutual funds possess more than 2% stake in the company.

Amara Raja Batteries, a prominent manufacturer of lead-acid batteries in the Indian storage battery industry, offers a wide range of products catering to industrial and automotive applications. 

Amara Raja Batteries serves a wide range of clients, including prominent telecom service providers, manufacturers of telecom equipment, players in the UPS sector, Indian Railways, and companies operating in the power, oil, and gas industries.

In its financial report for the March quarter, the company recorded a revenue of 
₹2,429 crore, indicating a 10% year-on-year growth from ₹2,197 crore reported in the corresponding period of the previous year.