Essel Propack share closes 8% lower as Blackstone to sell stake worth $251 million

Shares of Essel Propack closed over 7% higher today amid a report that  alternative asset manager Blackstone plans to offload stake in the firm. Essel Propack stock opened with a loss of 4.29% at Rs 261 against previous close of Rs 273 on BSE.

Total 774 lakh shares of firm changed hands amounting to turnover of Rs 1988 crore on BSE.

The share touched an intraday low of Rs 250, falling 8.42%. It stands higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

The share has gained 139.33% in one year and risen 42.52% since the beginning of this year  

Later, the share closed at Rs 251.90, down 7.73% or Rs 21 on BSE. According to a Livemint report, Blackstone plans to sell a majority stake of its shareholding in the packaging firm via block trades. The stake sale could fetch the investor as much as $251 million.

Epsilon Bidco Pte. Ltd, a Blackstone entity which owns 75 percent in Essel Propack, is considering up to 23 percent stake sale representing around 72.5 million shares of the company, according to deal terms.

The sale would fetch Blackstone about Rs 1,850 crore. The floor price has been set at Rs 255 per share. UBS Securities India Pvt Ltd and Systematix Shares & Stocks are lead managers to the share sale.

Meanwhile, Sensex and Nifty turned red by the last hour of session and closed lower on Friday, amid weak cues from global markets. Sensex ended 134 points lower at 38,845 and Nifty fell 25 points to 11,490.

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