📷 Image Credits: CNBCTV18
Heritage Foods, the dairy firm promoted by the family of Telugu Desam Party chief and Andhra Pradesh Chief Minister Chandrababu Naidu, witnessed a significant decline in its share prices as the price band was revised down to 5%. The stock hit its lower circuit for the second consecutive session on June 12, trading at Rs 627.30 on the NSE. Investors showed keen interest in booking profits amidst the downward trend.
A block deal involving 1.5% equity or 14.2 lakh shares, amounting to Rs 89.4 crore, took place on the same day, with the average share price at Rs 629. The transaction participants remain undisclosed. The revision of circuit limits from 10% to 5% on June 10 accelerated the profit-taking spree among investors, leveraging the stock’s surge in the preceding sessions.
Since June 3, Heritage Foods experienced a significant upsurge, driven by its alliance with the National Democratic Alliance 3.0 government, doubling the stock’s value in just 12 sessions. As a prominent player in the Indian dairy products sector, Heritage Foods’ value-added offerings like milk, curd, ghee, Paneer, and flavored milk enjoy a wide consumer base across 11 states. The stock’s meteoric rise has led to substantial gains for the Naidu family, who hold a collective stake of 35.7% in the company.
Bhuvaneswari, wife of Chandrababu Naidu, owns a stake of 24.37%, while his son Lokesh and daughter-in-law Brahmani hold stakes of 10.82% and 0.46% respectively. Furthermore, a notable deal valued at Rs 319.60 crore elevated the stock by 10% on June 10. The surge in transaction led to an exchange of approximately 44 lakh shares, representing 4.8% stake in the company. Founded in 1992, Heritage Foods has secured a prominent position in the industry with its high-quality dairy products. The ongoing developments in the company’s stock performance reflect the dynamic market trends and investors’ reactions to regulatory changes.
