Four stocks, namely Welspun Corp, PhysicsWallah, Viyash Scientific, and Rubicon Research, witnessed block deals on Wednesday, August 26, on the NSE in the morning block deal window (first session), NSE data showed.
This window runs between 08:45 AM and 09:00 AM.
The afternoon block deal window (second session) runs between 02:05 PM to 2:20 PM.
Stocks in focus
Welspun Corp
Shares of Welspun Corp tumbled up to 5.94% to ₹2,206.10 apiece on the NSE in the early session after 63,00,000 shares worth ₹1,433.44 crore changed hands in the block deal window.
Earlier, news reports said that the company’s promoter group, Welspun Investments and Commercials, and MD & CEO Vipul Mathur have proposed to sell up to 6.3 million shares, or around 2.4% of the company’s equity, through a block deal.
The offer price was reported to be set at ₹2,250 per share, implying a discount of up to 4.1% to the last traded price, with the transaction valued at around ₹1,418 crore ($149 million).
The shares offered in the deal will be subject to a 90-day lock-up period, reports added.
Physicswallah
Physicswallah shares were trading in the green. The stock traded at ₹125.11, up over 3% after a large trade involving 4,66,98,120 shares worth ₹549.73 crore took place on the NSE.
Rubicon Research
Rubicon Research shares were trading 3.32% higher at ₹1,765.50 apiece on the NSE.
Block deal data showed that 8,43,372 shares worth ₹140 crore changed hands today.
Viyash Scientific
Viyash Scientific, on the other hand, was trading around 5% lower at ₹264.75 on the NSE.
Data showed that 55,56,000 shares worth ₹150.01 crore changed hands in the block deal window.
Meanwhile, according to a report by CNBC-TV18, around 12.74 crore shares, or 2.1% of Billionbrains Garage Ventures (Groww), worth approximately ₹2,500 crore, changed hands in a block deal.
However, the transaction data was not visible on the NSE website at the time of writing.
Block deals: What you need to know
A block deal is a large transaction involving a minimum quantity or value of shares executed between two parties at a pre-agreed price through a separate trading window on the stock exchange.
On the NSE, block deals are conducted in two sessions – the morning window from 8:45 AM to 9:00 AM and the afternoon window from 2:05 PM to 2:20 PM.
A large block trade can sometimes trigger a sharp move in the stock, but the direction depends on the market’s interpretation of the transaction.
Stocks may fall when investors see the deal as a large shareholder exiting or when the transaction is priced at a discount to the prevailing market price.
Conversely, shares can gain if the buyer is viewed positively, the deal signals institutional interest, or the transaction removes uncertainty around a large stake sale.