Shares of Indigo Paints experienced significant volatility during Friday’s trading session, largely fueled by a massive block deal worth over Rs 1,745 crore. The stock opened at Rs 1,511 and surged to an intraday high of Rs 1,584 on the NSE. However, the stock’s momentum quickly reversed, and it retraced towards its 20-day moving average (20-DMA), currently standing at Rs 1,458.34.
The sudden volatility in Indigo Paints is primarily due to a colossal block deal reported at 9:17 am on the NSE. The deal, valued at Rs 1,745.18 crore, involved 11,698,514 shares priced at Rs 1,491.80 each. Just minutes later, additional block deals were reported at 9:18 am and 9:22 am, valued at Rs 54.77 crore and Rs 40.37 crore, respectively, involving 368,530 and 274,453 shares.
The trading activity reached an all-time high for Indigo Paints, with nearly 199.54 lakh shares exchanging hands within the first hour of trading. This surge in volume reflects heightened market interest and a significant change in ownership dynamics.
The identities of the buyers and sellers remain undisclosed, but speculation is rife that Peak XV Partners could be offloading a substantial portion of their stake in Indigo Paints. Reports suggest that the deals may be larger than initially anticipated, possibly indicating the near-complete exit of Peak XV from the company.
Following the series of block deals, shares of Indigo Paints have declined by 3.54%, pushing the stock into negative territory for the year 2024.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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