Tata Group to sell Voltas stake? Voltas shares jump 1% after falling to 11-month low. ‘News is not negative’

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Published: June 26, 2018 11:40:24 AM

Shares of Mumbai-based AC maker Voltas recovered from the 11-month low share price level in the late morning deals on Tuesday. The stock of Voltas started the day on a negative note and very quickly slipped to an 11-month low level on reports of Tata Group selling a stake in the company.

The stock of Voltas tumbled 4.2% to an 11-month low of Rs 493.05 on NSE in the early morning trades. (Image: Reuters)

Shares of Mumbai-based AC maker Voltas recovered from the 11-month low share price level in the late morning deals on Tuesday. The stock of Voltas started the day on a negative note and very quickly slipped to an 11-month low level on reports of Tata Group selling a stake in the company. Tata Group exploring options to divest up to 9% stake in Voltas, a CNBC TV18 tweet said. Following the development, shares of Voltas declined more than 4% to an 11-month low, also witnessing the biggest intraday percentage drop since 18 May 2018.

“Rumours of promoter group selling some stake in Voltas is having an effect on the shares. It’s not a negative news though, just that few investors might believe that there might be some overhang on the stock as supply comes into the market when the sale happens,” John Perinchery, Emkay Global Financial Services was quoted in a Reuters report.

The stock of Voltas tumbled 4.2% to an 11-month low of Rs 493.05 on NSE in the early morning trades. Later, in the mid-morning deals, Voltas shares rose to a day’s high of Rs 521.9, up 5.85% from day’s low and up 1.32% from the previous closing price of Rs 515.1 on NSE.

Voltas shares have risen around 15% in the last one year term while the stock made a 52-week high of Rs 668.55 on 27 December 2018. Notably, since the beginning of FY19, Voltas shares have lost 17%.

 

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