Bondada Engineering’s share price has seen significant losses in the last three days, even though a company promoter raised his stake in the telecom infrastructure firm through an open market transaction.
A promoter’s increasing stake in a company is generally seen as a positive for the stock because it indicates the promoter’s confidence in the healthy growth prospects of the company and its sound financial health.
On Thursday, March 13, the small-cap stock opened at ₹376.90 against its previous close of ₹367.70 and dropped 3.2 per cent to the level of ₹356. At this price, the stock has lost over 10 per cent in three days, including Thursday.
Bondada promoter raises stake
In an exchange filing on March 13, the company said its promoter Bondada Raghavendra Rao increased his stake in the company to 5,02,50,000 shares, equivalent to 45.76 per cent, by acquiring 8,600 shares through an open market transaction on March 11.
Before the acquisition, he held 5,02,41,400 shares, or 45.75 per cent, in the company.
Since the promoter purchased shares from existing shareholders in the open market rather than the company issuing new shares, the acquisition did not change Bondada Engineering’s total voting capital, which remains at ₹21,96,52,970 divided into 10,98,26,485 shares of ₹2 each.
