Major block deals are set to take place today involving shares of Avalon Technologies Ltd and Gland Pharma Ltd, with significant stakes changing hands for hundreds of crores of rupees. The transactions are anticipated to draw considerable attention from market participants.
Avalon Technologies Founders to Divest Stake
Founders of Avalon Technologies, including Bhaskar Srinivasan, are poised to offload a substantial portion of their holdings. Up to 50 lakh shares, representing approximately 6 percent of the company's total outstanding equity, are expected to be sold through block deals.
The indicative price band for this transaction has been set between Rs 2,150 and Rs 2,302 per share, aligning closely with Tuesday's closing price of Rs 2,302. This large-scale deal is valued between Rs 860 crore and Rs 920 crore. Nomura Financial Advisory and Securities India is managing this significant offering.
Market analysts currently have mixed views on Avalon Technologies. The stock has received nine 'Buy' calls, three 'Hold' calls, and seven 'Sell' calls. Notably, Kotak Securities issued a 'Sell' recommendation on September 28, setting a target price of Rs 1,740. JPMorgan also rated it 'Underperform' on September 24, with a target of Rs 1,650. The 12-month Bloomberg consensus target stands at Rs 1,962 per share, suggesting a potential downside of 14.80 percent.
Gland Pharma Sees Rs 450 Crore Share Transaction
In a separate development, Gland Pharma is also expected to witness a significant block deal today. Reports indicate that approximately 15 lakh shares of the pharmaceutical company may change hands. The total value of this transaction is estimated to be around Rs 450 crore, with a floor price reportedly set at Rs 2,990 per share, as per a CNBC Awaaz report.
For Gland Pharma, analyst sentiment is generally more positive, with 11 'Buy' calls, three 'Hold' calls, and four 'Sell' calls. The 12-month Bloomberg consensus target for Gland Pharma is Rs 2,867.88, implying a 4 percent potential downside from current levels. Individual firms like Amit Capital have issued a 'Sell' rating with a target of Rs 1,940, while 360 One Capital has a 'Buy' rating and a target of Rs 3,050.
These block deals highlight ongoing movements in the Indian equity market, reflecting strategic decisions by founders and significant institutional interest in the pharmaceutical and technology sectors.