Promoter sells 75,00,000 shares today to clear personal debt and enhance personal liquidity position!

The company's shares have delivered an impressive return of over 52 per cent to their shareholders in the past 1 year.

The company has informed via a press release that Dr. Krishna Prasad Chigurupati, a Promoter of the Company, has conducted a one-time sale of 75,00,000 equity shares of Granules India Limited on May 22, 2024, through a block deal. This action was primarily aimed at alleviating personal debt to remove the existing pledge on his company holdings and to generate some personal liquidity.

Chigurupati has emphasized that he currently has no intentions of further selling his shareholding in Granules India Limited in the foreseeable future. Following this transaction, the total shareholding of the Promoter & Promoter Group in the Company has decreased from 41.96 per cent to 38.87 per cent of the Paid-up equity share capital, while Dr. Krishna Prasad Chigurupati's holding as a Promoter has decreased from 34.78 per cent to 31.69 per cent of the Paid-up equity share capital.

Granules India Ltd and its subsidiaries are primarily involved in the manufacturing and selling of Active Pharma Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs), and Finished Dosages.

In terms of the current shareholding pattern of the company, promoters hold 41.96 per cent, while FIIs and DIIs hold 19.57 per cent and 10.70 per cent, respectively. Ace Investor Akash Bhansali holds 1.10 per cent of the company.

Financial Performance of Granules India

As per Quarterly Results in Q4 FY24, Granules India reported revenues of Rs 1176 crore, reflecting a de-growth of 1.65 per cent YoY compared to the same quarter in the previous year, when the revenue stood at Rs 1196 crore. The company posted an operating profit of Rs 256 crore for the quarter, in contrast to an operating profit of Rs 228 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 130 crore, compared to a net profit of Rs 120 crore in the same period last year.

The company’s ROCE and ROE are 15.3 per cent and 13.4 per cent while the shares are trading at a PE of 25.1 times in the market. 

Currently, the company’s share is trading at around Rs 419.15 per share on the BSE. Investors must keep this multibagger small-cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.