Shares of Jubilant Life Sciences fell 6 percent intraday on March 20 following reports that the employee welfare trust of the pharmaceutical company had decided to sell 2.2 percent stake for about Rs 268 crore through block deals.
According to a report in The Times of India, the trust has mandated Citi Global Markets to sell 35 lakh shares of the company at a price, not below 8.5 percent of the stock’s closing price on the NSE on March 19, which was Rs 841.65. This roughly equates to Rs 770 per share.
Reports further suggest that the deal is being executed through the accelerated book-building method, under which the executing broker reaches out to institutional investors with details of the offer after the close of the day’s trading. The transaction is executed the next morning through block deals.
At 1039 hours, Jubilant Life Sciences was quoting Rs 791.10, down 6.01 percent on the NSE.