Shares of KPIT Technologies surged 12 per cent to hit a record high of Rs 185 on the BSE in intra-day trade on Wednesday in an otherwise weak market. The stock of the IT consulting and software company surpassed its previous high of Rs 174 touched on March 10, 2021.
At 09:49 am, it was trading 11 per cent higher at Rs 183 as compared to a 0.55 per cent decline in the S&P BSE Sensex. A combined around 2.5 million equity shares of the company changed hands on the counter in the first 34 minutes of trade on the NSE and BSE.
On March 10, Kishor Parshuram Patil, the promoter of KPIT Technologies had sold 6.05 million equity shares (2.21 per cent of the total equity capital of the company) worth Rs 94 crore of the company via the open market on the NSE and BSE. Patil sold 1.96 million equity shares in the company at Rs 156.05 per share on the NSE and 4.10 million shares at Rs 155.01 per share on the BSE via block deals, the exchanges data shows. The names of the buyers were not ascertained immediately.
Post-transaction, Patil’s stake in KPIT Technologies declined to 4.86 per cent from 7.07 per cent earlier.
The purpose of this sale was to repay the majority of the outstanding loans of Kishor Patil, which were taken for the purchase of KPIT shares, post the composite scheme of merger and demerger, the company said in an exchange filing.
When the payment formalities are completed, the majority of the shares pledged by Kishor Patil will be free and we expect the balance pledged shares to be under 2 per cent of the total outstanding share capital of the company, the company said.