New institutional investors add stake in Essel Propack; stock gains 3 per cent
The shares of Essel Propack Ltd were trading with gains of more than 3 per cent on Monday after registering 16 per cent fall in the last four trading sessions. The reaction in the stock price was followed by a stake sell by Blackstone during the last week.
Blackstone had acquired Essel Propack in 2019 at an investment of Rs 2,300 crore. The share price at which the deal went through was recorded at Rs 134 per share. On Monday last week, the share price touched its all-time high of Rs 300 on BSE.
According to the data available on the exchanges, Epsilon Bidco Pte Ltd, which is a part of Blackstone investment vehicle mechanism, offloaded nearly 23 per cent stake in the company. The open market operations saw various institutional investors take up these shares. Axis Mutual Fund, IDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Franklin Templeton Mutual Fund, DSP Mutual Fund were some of the markie names, which now has an exposure to the shareholding of the company.
After the stake sell, Epsilon Bidco Pte Ltd will continue to hold a controlling stake in the company with 52 per cent holding remaining. Essel Propack is a manufacturer of plastic packaging material (collapsible tubes & laminates) used for FMCG companies.