Zen Technologies Shares Fall ~6% After Block Deal

Shares of Zen Technologies Ltd., a defence company, saw a significant drop of up to 6% on Tuesday, December 3, following the completion of a block deal in the early minutes of trading.

Details of the Block Deal

In the block deal, a total of 20 lakh shares of Zen Technologies were traded. This transaction represented 2.5% of the company’s total outstanding equity. The shares were exchanged at an average price of ₹1,800 per share, resulting in a total value of ₹386 crore for the entire deal.

Shareholding Pattern as of September

According to the September shareholding pattern, the promoters of Zen Technologies held a 51% stake in the company. Mutual Funds owned 4.55%, and Foreign Portfolio Investors held 5.7%.

Zen Technologies Business Update

In November 2024, Zen Technologies announced that it had been granted an Indian Patent for the “T90 Containerized Crew Gunnery Simulator” on 25th November 2024. This patent is Company’s 20th Patent awarded in the calendar year 2024, and the 10th in the financial year 2024-25.

During Q2 FY25, the company reported revenue from operations of ₹241.69 crores, a significant increase of 277% compared to ₹64.03 crores in Q2FY24. The company’s operational EBITDA for the quarter was ₹79.42 crores, representing a growth of 265% from ₹21.76 crores in the same period last year.

As of September 30, 2024, Zen Technologies reported a robust liquidity position with balances in banks totalling ~₹1,103 crore. This strong cash reserve positions us favourably for future R&D investments and strategic acquisitions.

Earlier this year, in August, Zen Technologies raised over ₹1,000 crore through an institutional share sale (QIP), which was heavily subscribed, receiving over five times the demand.

On Tuesday at 10:30 AM, Zen Technologies shares were trading 4.6% lower at ₹1,824 per share and touched the day low of ₹1,771.10.

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.