Exxaro Tiles Share Price Surge: Key Factors Behind the Rally
The shares of Exxaro Tiles have experienced a remarkable surge recently, with a notable increase of about 20% on September 24, followed by a further jump of more than 9% intra-day today. This bullish trend is largely attributed to positive investor sentiment stemming from the company’s announcement regarding a potential stock split, as well as significant institutional investment from BofA Securities.
Stock Split Announcement
Exxaro Tiles announced that the decision on the share split will be discussed in the upcoming board meeting scheduled for October 14. The company’s intention to split its shares, which has not been done since its IPO three years ago, has sparked interest among investors. This anticipation has played a crucial role in boosting share prices, as market participants often view splits as a positive signal as they make shares more affordable to a broader range of investors.
Recent Performance and Market Reaction
| Date | Closing Price (Rs) | Change (%) |
|---|---|---|
| September 24, 2024 | 105.44 | +20% |
| Today (Intra-day) | 100.57 | +4.66% |
| One-year High | 146.90 | — |
| One-year Low | 76.02 | — |
Despite a slight dip in prices due to profit booking, Exxaro Tiles remains in a strong position. Currently, it is trading at Rs 100.57 on the Bombay Stock Exchange (BSE).
BofA Securities’ Investment
Contributing to the positive momentum, BofA Securities Europe SA made headlines by acquiring 666,000 shares of Exxaro Tiles, amounting to a 1.48% stake in the company. This purchase was executed through block deals at a price of Rs 96.22 per share. This marks a significant milestone as it is the first instance of a major fund house taking a stake in Exxaro Tiles, suggesting confidence in the company’s potential and future growth.
Investor Composition
Interestingly, the overall foreign portfolio investors (FPIs) hold a 4% stake in the company, while domestic institutions have not yet engaged. Additionally, small retail investors, often seen as the backbone of many companies, hold a substantial 17.56% stake with investments not exceeding Rs 2 lakh.
Conclusion
In conclusion, the recent surge in Exxaro Tiles’ share price highlights the dynamic nature of the stock market, driven by strategic announcements and institutional interest. Investors are keenly watching the developments ahead, particularly regarding the upcoming decision on the stock split, which could further influence market sentiments and buying decisions in the near future.
