Sona BLW Precision Gains After SBI Mutual Fund Increases Stake to 7.47%
SBI Mutual Fund bought 94.3 lakh shares, representing 1.51% of the paid-up share capital of the company through "qualified institutional placement and market purchase on Sept. 10," the company said.
Shares of Sona BLW Precision Forgings Ltd. rose over 2% on Thursday after SBI Mutual Fund increased its stake in the company.
The mutual fund arm of the State Bank of India raised its shareholding from 5.31% to 7.47% in Sona BLW, according to a regulatory filing.
SBI Mutual Fund, under its various schemes, bought 94.3 lakh shares, representing 1.51% of the paid-up share capital of the company through "qualified institutional placement and market purchase on Sept. 10," the filing said.
The final holding of SBI Mutual Fund increased to 4.64 crore shares, or 7.47% stake, it said.
The company's QIP issue fetched a total of Rs 2,400 crore, it said in a filing on Monday.
Shares of Sona BLW rose as much as 2.1% to Rs 741.3 apiece on the NSE. In comparison, the benchmark Nifty 50 was nearly flat at 12:17 p.m.
The stock has risen 15.19% so far this year and 29.6% in the last 12 months. The stock's relative strength index was 58.96.
Thirteen out of the 19 analysts tracking the company have a 'buy' rating on the stock, four suggest a 'hold' and 2 have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 1.5%.
