Bartronics India Share Price Surges on Promoter Stake Sale Announcement
The shares of Bartronics India Limited, a prominent player in the fintech and business solutions space, saw positive movement during Tuesday's trading session. This occurred following the news that the company's promoter is planning to offload over 6 percent of its stake through an offer for sale (OFS), amounting to approximately Rs. 42 crores.
Market Reaction to the OFS
At 11:52 a.m., Bartronics India Limited shares were trading at Rs. 23.11 on the BSE, marking an increase of nearly 3.2 percent from its previous closing price of Rs. 22.4. The company has a market capitalization of Rs. 703.8 crores.
Details of the Offer for Sale
Bartronics India Limited has officially announced that its promoter, Kinex India Private Limited, will divest around 1.91 crore equity shares via an Offer for Sale (OFS). This sale represents a 6.29 percent stake in the company, with a face value of Rs. 1 per share. The floor price for the OFS has been set at Rs. 22 per share, resulting in a total transaction value of about Rs. 42.14 crores.
OFS Structure and Timeline
The sale will be conducted in two phases. On January 14th (T Day), non-retail investors will have the opportunity to place their bids. The following day, January 15th (T+1 Day), will be open to retail investors, along with non-retail investors who wish to carry over any un-allotted bids from T Day.
Share allocation will be determined based on price priority, for bids at or above the floor price, using multiple clearing prices. Notably, 10 percent of the total shares on offer, equivalent to 19.15 lakh equity shares, have been specifically reserved for retail investors.
Promoter Shareholding
As of the September 2024 shareholding pattern filed with the BSE, Kinex India Private Limited holds approximately 26.06 crore equity shares in Bartronics India, representing an 85.57 percent stake. This is not their first divestment, as they had previously sold a 4.43 percent stake via an OFS in July which was fully subscribed.
Past News & Developments
Merger with PTW Group
On January 8th, 2025, Bartronics India entered into a Memorandum of Understanding (MoU) with PTW Group, a Singapore-based semiconductor solutions provider in the Indian market. The proposed merger of PTW and Bartronics aims to establish semiconductor production, refurbishing, and training facilities in India, aligning with the country's goal of becoming a global semiconductor hub.
Financial Overview
Revenue & Profitability
The company's revenue from operations saw a year-on-year decrease of around 29 percent, falling from Rs. 12.4 crores in Q2 FY24 to Rs. 8.8 crores in Q2 FY25. In contrast, the company's net profit improved from a loss of Rs. 1 crore to a profit of Rs. 0.3 crores during the same period.
About Bartronics India Limited
Founded in 1990, Bartronics India Limited specializes in providing solutions based on Bar Coding, a well-established Automatic Identification & Data Capture (AIDC) technology. The company is known for delivering advanced technology solutions to businesses, making it a key Fintech business solution provider.
Disclaimer
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
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