Gulf Oil Lubricants India share price could be in focus today after yesterday's block deal involving 4 percent stake in the company. The parent company offloaded 3.96 percent stake in Gulf Oil Lubricants India in the open market. The stock could see further action in today's trading session. Indian markets are expected to open flat on Friday but we could see higher volatility as major indices are at their all-time highs. The market sentiment has been cautious over the last few sessions but bullish trends have prevailed.
Gulf Oil International Mauritius Inc., the promoter of Gulf Oil Lubricants India, executed a significant divestment on Thursday, offloading a 4% stake worth over Rs 263 crore through open market transactions. This strategic sale saw Gulf Oil International Mauritius reducing its holding in Gulf Oil Lubricants India from 71.76% to 67.8%. The shares were sold at an average price of Rs 1,351 each, with notable institutional investors, including UTI Mutual Fund, ITI Mutual Fund, and Baroda BNP Paribas Mutual Fund, among the key buyers. Following the transaction, Gulf Oil Lubricants' stock price saw a decline, closing 4.89% lower on the NSE.
Promoter Offloads 3.96% Stake Worth Rs 263 Crore Gulf Oil International Mauritius Inc., a key promoter entity of Gulf Oil Lubricants India, strategically divested 19,50,000 shares, equating to a 3.96% stake in the company. This offloading, conducted through open market transactions, was part of a broader effort to recalibrate its investment portfolio. The shares were sold at an average price of Rs 1,351 apiece, culminating in a total transaction value of Rs 263.44 crore, marking a significant shift in the promoter's holding pattern.
Post-Divestment Holding Reduces to 67.8%
Following the stake sale, Gulf Oil International Mauritius' ownership in Gulf Oil Lubricants India decreased from 71.76% to 67.8%. This reduction reflects the promoter's strategic decision to liquidate a portion of its stake, possibly to diversify its investment base or capitalize on the current market valuations.
Prominent Mutual Funds and Financial Institutions Among Buyers The divestment attracted strong interest from institutional investors, with UTI Mutual Fund, ITI Mutual Fund, Baroda BNP Paribas Mutual Fund, JM Financial Mutual Fund, Aditya Birla Sun Life Insurance, Axis Securities, and Societe Generale being prominent buyers. Their participation underscores a vote of confidence in Gulf Oil Lubricants India's business fundamentals, despite the promoter's partial exit.
Shares Decline 4.89% Post Transaction The market responded to the divestment with a noticeable decline in Gulf Oil Lubricants India's share price. The stock fell by 4.89%, closing at Rs 1,370 per share on the NSE on Thursday. The decline reflects investor sentiment reacting to the sizable exit by a major promoter, although the involvement of institutional buyers provided some stability to the stock.