Promoter Group Increases Stake: BigBloc Construction Promoter Buys Over 1.34 Lakh Shares from Open Market

Promoters Increase Stake

BigBloc Construction Ltd, one of India’s largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels, saw its promoter group acquire 1.34 lakh equity shares from the open market. As of September 30, 2024, the promoter group now holds a 72.51% stake in the company, totaling 10.26 crore equity shares.

On September 27, 2024, Mrs. Madhu Narayan Saboo, a member of the promoter group, purchased 89,594 equity shares for Rs 1.10 crore at an average price of Rs 123.74 per share. This acquisition increased her shareholding to 5.75%, representing 81.35 lakh shares.

Furthermore, on September 30, 2024, Mr. Narayan Sitaram Saboo (HUF) acquired 45,000 equity shares for Rs 54 lakh at an average price of ₹120 per share. This raised his shareholding to 3.45%, representing 48.84 lakh shares.

Growing AAC Block Market

BigBloc Construction is positioned to benefit from the booming AAC block market. The construction industry is increasingly moving from traditional bricks to AAC blocks, driven by government regulations and environmental concerns. In metro areas, over 60-70% of builders have adopted AAC blocks, and adoption is growing in Tier II cities and the industrial segment as well.

BigBloc aims to lead this transformation with quality building products while prioritizing sustainability. The company has implemented solar power projects across all its manufacturing facilities, recently ordering an additional 250 KW rooftop solar plant at its Vapi unit and initiating a 625 KW project at its Wada Plant, bringing the total solar capacity to 1.3 MW.

Company Financials and Recent Developments

BigBloc recently issued a 1:1 bonus share to reward shareholders and enhance liquidity. The company also increased its authorized share capital from Rs 15 crore to Rs 30 crore during its AGM. For FY24, BigBloc reported a consolidated net profit of Rs 30.69 crore, with revenue rising 21.55% year-over-year to Rs 243.22 crore. The EBITDA stood at Rs 56.15 crore, up by 12.29% from the previous year.

BigBloc, incorporated in 2015, is the only listed player in the AAC Block industry. The company has four AAC plants in Gujarat and Maharashtra, with a combined production capacity of 1.3 million cubic meters annually. It also generates carbon credits, making it among the few companies in this industry focusing on sustainability.

Sustainable Building Solutions

BigBloc’s AAC blocks are lightweight, soundproof, fire-resistant, and eco-friendly compared to traditional bricks. These sustainable construction materials offer superior build quality at a lower cost. The company markets its products under the brand name “NXTBLOC” and has completed over 2,000 projects, with another 1,500 in the pipeline. Its clientele includes renowned names such as Adani Realty, Oberoi Realty, L&T, and Raheja, among others.

BigBloc Construction remains committed to revolutionizing the building materials industry with high-quality, sustainable products.

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.