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Shares of Dabur are looking to recover from the day's low after the company's promoters sold less than one percent stake in the company, people with knowledge of the matter told CNBC-TV18.
Sources said that the stake has been sold to some private ventures. These private ventures of promoter entities include the QSR and F&B businesses. The sources further said that promoters are unlikely to sell further stake in the company.
Earlier on Tuesday, 1.9 crore shares or 1.06 percent of Dabur's total equity had exchanged hands in a large trade.
The transactions took place at an average price of Rs 571 apiece, amounting to a total consideration of Rs 1,089 crore, according to data available.
CNBC-TV18 had learnt through sources on Monday that Dabur's promoters - Gyan Enterprises and Chowdry Associates were likely to sell shares worth over Rs 800 crore through block deals. Sources also mentioned that the deal was likely to take place between a price band of Rs 565.5 to Rs 589.05 per share.
Amit Burman-owned Gyan Enterprises held 11.41 percent stake in Dabur at the end of the September quarter. Chowdry Associates, owned by Saket Burman, held 12.3 percent stake in the company as of September 30.
Overall stake held by promoters and promoter group companies in Dabur stood at 67.24 percent at the end of the September quarter.
There would now be a lock up period of 60 days for any further stake sale for promoters.
Speaking on a potential promoter stake sale, Nuvama's Abneesh Roy said that investors will not like the news of the promoters selling stake and would need more clarity on the same. The firm has a buy recommendation on Dabur.
Dipan Mehta of Elixir Equities is not very optimistic on Dabur's prospects. He advises investors to not
use these corrections to get into any FMCG stock, including Dabur.
"I think the new consumption theme can be best played to a lot of other new generation companies or companies which are focused on spending habits, which are changing like retail, entertainment, travel, hospitality, healthcare, I think those are the new so called FMCG which one can play if you want to benefit from rising consumption spends," he said.
Shares of Dabur are currently off the day's low, trading 1.2 percent lower at Rs 582.15.