Shares of Mankind Pharma fall over 4.5% in trade on the back of a large block deal, trading at Rs 1835 at the market opening. According to media reports, five private equity funds – Beige Investment, Link Investment Fund, Cairnhill CIPEF, Cairhill CGPE, and Hema CIPEF – are said to have sold their stake in Mankind Pharma via the block deal. The floor price for the deal according to reports was set at INR 1,785.65 per share, representing a 7% discount to Mankind Pharma’s previous day’s closing share price of INR 1,920.05.

The combined stake on offer was said to be to 7.9% worth INR 5,649 crore. The base deal size would be 6.9% at INR 4,935 crore.

Mankind Pharma is the fourth-largest pharmaceutical company in India based on domestic sales. It manufactures popular brands such as Manforce, PregaNews and Unwanted 72. The company recently announced a 21% year-on-year rise in consolidated net profit at INR 511 crore for the second quarter.

Shares of Five Star Business Finance Ltd fall nearly 4% on Thursday, December 8, 2023, after a large block deal is executed on the counter.

As per exchange data, approximately 2.3 crore shares or 8% equity stake in the company changed hands in block deals. The total value of the shares sold is estimated at Rs 1,704 crore, as they were offloaded at an average price of Rs 730 per share.

Sources indicate that private equity funds who held stakes in Five Star Business Finance were the likely sellers behind this major block transaction. The block deal was one of the largest by value recorded in recent months.

The share sale comes at a time when Five Star and other lending firms are facing scrutiny over their business practices after allegations against the Adani Group.

Shares of IDFC First Bank plunged up to 5% on Thursday after nearly 1.96% of the private lender’s equity worth ₹1,135 crore was traded in a large deal.

As per exchange filings, around 13.2 crore shares representing 1.96% stake were sold in a block deal by undisclosed participants. Following this, IDFC First stock hit an intraday low of ₹86.05 apiece, down 4.83% during the session.

The trading volumes in the counter swelled to 13.92 crore shares compared to the two-week average of 32.63 lakh shares. IDFC First stock had risen 6% over the past 5 days amid a broader rally. But it still trades 14% off its 52-week peak of ₹100.74 recorded in September 2022.

Reports suggest Warburg Pincus may have trimmed its holdings via this deal after recently exiting CAMS. The PE investor was likely targeting gains by capitalizing on the ongoing market momentum.

At 10:13 AM, IDFC First Bank traded 3.61% lower at ₹87.16 as the block deal weighed on overall sentiment. The lender’s promoter IDFC Financial Holdings owns 37.51% stake while public shareholders account for 62.49% equity.