Authum Investment Boosts Its Stake in SpiceJet, Shares Surge
In a noteworthy move on March 24, Authum Investment & Infrastructure saw its stock price rise by over 2% during intra-day trading. This uptick came after the company announced it had successfully acquired an additional 3.82% stake in the airline SpiceJet through an off-market transaction conducted the previous week.
Acquisition Details
According to an official exchange filing, Authum Investment acquired 49 million shares in SpiceJet, translating to a 3.82% ownership increase. Prior to this acquisition, the non-banking finance company (NBFC) held approximately 37.4 million shares, equating to a 2.92% stake. With this latest transaction, Authum’s total stake in SpiceJet now sits at 6.74%, or about 86.4 million shares.
- Transaction Date: March 20
- Shares Pledged: Ordinary shares with a face value of ₹10
- Special Rights: None associated with these shares
Stock Performance Analysis
Following this strategic acquisition, Authum Investment’s share price climbed by 2.06%, reaching a peak of ₹1585 per share. The stock opened at ₹1560, surpassing the previous close of ₹1549.45, and continued to gain momentum throughout the day. The lowest price recorded was ₹1553.95, which still reflected an increase over its last closing value.
Impressive Returns for Investors
Authum Investment has proven to be a lucrative option for investors, showcasing remarkable performance over various time frames:
- 1-Year Return: 105%
- 2-Year Return: 724%
- 5-Year Return: A staggering 20,290%
Dividend Announcements
In addition to the acquisition news, Authum Investment also declared interim dividends for both its equity and preference shareholders.
- Preference Shares: An interim dividend of 7% on fully paid-up preference shares with a face value of ₹10, amounting to ₹0.7 per share.
- Equity Shares: An impressive 100% interim dividend on equity shares with a face value of ₹1, resulting in a payout of ₹1 per share.
The record date for these dividends has been set for March 27, with the payout expected to occur on or before April 19 for both categories of shareholders.
Conclusion
Authum Investment’s strategic moves have not only strengthened its foothold in SpiceJet but also promise substantial returns for investors. With robust performance metrics and attractive dividends, it remains a stock to watch in the financial landscape.
