Billionaire Radhakishan Damani, the founder of retail giant D-Mart, significantly fortified his stake in VST Industries, a prominent Hyderabad-based cigarette manufacturer. This acquisition, executed on Tuesday through a block deal, saw Damani acquire over 2.22 lakh shares, propelling his ownership in VST Industries to a commanding 32.14%.
As per the Bombay Stock Exchange's (BSE) cited data, the calculated purchase, channeled through Damani's established investment vehicles, Derive Trading and Bright Star, was executed at an average price of ₹3,390 per share. This makes an additional 1.44% increase in Damani's holding, solidifying his position as the undisputed single largest shareholder in the VST industry.
Interestingly, Damani wasn't the only one investing in VST Industries. The State Bank of India Mutual Fund (SBIMF) also acquired 2.25 lakh shares at the same price. This synchronized buying activity propelled VST Industries stock to soar, hitting the 20% upper circuit and highlighting strong investor confidence in the company's fundamentals.
Damani's latest move comes unexpectedly, adding another layer of intrigue to his already acclaimed business acumen.
Meanwhile, D-Mart itself reported an increase of 17.19% year-over-year surge in revenue for the quarter ended December 2023, reaching ₹13,247.33 crore. This sustained growth trajectory further solidifies D-Mart's position as the undisputed leader in Indian retail stores, with its network of 341 stores strategically spread across the nation.
‘Damani's maneuvers are always worth observing. His latest play in the market promises to keep investors engaged, and analysts wondered’.