UTI sells Nestle shares of Rs 85cr in a block deal

The Unit Trust of India is continuing with its restructuring process and mobilisation of funds by selling off blue chip stocks in its portfo...

The Unit Trust of India is continuing with its restructuring process and mobilisation of funds by selling off blue chip stocks in its portfolio. The country’s largest mutual fund sold around 15 lakh shares of Nestle India Ltd in a block deal — the latest in a series of sales — to its parent organisation Swiss food major Nestle AG.

The deal is understood to have been struck at a price of approximately Rs 570 per share, market sources said, adding that the UTI made Rs 85 crore from the transaction. “For Nestle parent firm, the deal will be part of creeping acquisition. Under this, promoters can buy up to 10 per cent of the equity in a year. Nestle AG may be looking at delisting the Indian arm,” brokers said.

According to market sources, the UTI move may be a two-pronged plan aimed at reducing its equity portfolio and finding resources for redemption of some of the schemes. UTI was facing a shortfall in some of its MIP schemes.

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UTI earlier this week sold 9.5 per cent stake in Bajaj Hindustan Ltd (BHL) to Bachraj & Co and Jamnalal Sons Pvt Ltd, two companies belonging to the Bajaj group. Bajaj Auto chairman Rahul his cousins and estranged brother Shishir, all have a stake in BHL. In a negotiated deal, UTI offloaded 4.5 lakh shares of Bajaj Hindustan to Bachraj & Co and 3.79 lakh shares to Jamnalal Sons Pvt Ltd respectively at Rs 95 per share.

In another block deal, UTI sold 40 lakh shares of GAIL Ltd aggregating over Rs 28 crore. According to market sources, the shares, which were sold at an average price of Rs 71.26 per share, were picked up by a foreign investor.