Block Deal Alert: Up to 3% stake sales likely in Aditya Birla Lifestyle, Aditya Birla Fashion

Block deals are set to hit two Aditya Birla Group companies on Tuesday, January 20, with undisclosed institutional investors looking to pare holdings, sources told CNBC-TV18.

In Aditya Birla Lifestyle Brands

Ltd, an institutional investor is likely to sell up to 3% equity through a block deal. The offer size is estimated at $43 million, with a floor price of ₹106.14 per share, representing an 8.4% discount to the last closing price. The transaction is expected to be a clean-out trade, the sources said.

Separately, in Aditya Birla Fashion and Retail Ltd (ABFRL), an undisclosed institutional investor is also likely to offload up to 3% stake via a block deal. The offer size is pegged at $32 million, with a floor price of ₹65.78 per share, implying an 8.5% discount to the current market price of ₹71.89. This transaction, too, is described as a clean-up trade, according to sources.

In October, Flipkart Investments Pvt Ltd sold a 6% stake in Aditya Birla Lifestyle Brands Ltd for about ₹998 crore through a block deal on the exchanges, according to exchange data. The shares were sold at an average price of ₹136.45 apiece, at a 7% discount to the stock’s closing price at the time.

Shares of Aditya Birla Fashion and Retail Ltd ended marginally higher on Monday, January 19, by 0.04% at ₹71.33 on the NSE, while Aditya Birla Lifestyle Brands Ltd shares ended marginally lower at ₹116.