KPR Mill share price would be in focus in today's session as SBI Mutual Fund has added 2.85 percent stake in the company. SBI Mutual Fund is currently holding 7 percent in KPR Mill. The stock was trading negative on Thursday as the promoter has sold stake in the company which has been picked up by SBI Mutual Fund. The stock was trading at Rs 995, down by one percent. The stock is trading close to its 52-week high at Rs 1053.

SBI Mutual Fund has recently increased its stake in KPR Mill to 7.74% by acquiring an additional 2.85% of shares valued at over Rs 900 crore through an open market transaction. This strategic move has heightened the fund's presence in the apparel manufacturing giant, signaling confidence in KPR Mill's market potential. Meanwhile, one of the company's promoters, KP Ramasamy, divested a significant portion of his holdings, reducing his stake from 21.37% to 18.3%. This shift reflects evolving dynamics in KPR Mill's ownership structure, with the promoter group's combined stake falling to 70.69%. Below, we break down the key developments of this transaction.

SBI Mutual Fund Raises Stake in KPR Mill

Increased Shareholding to 7.74%
SBI Mutual Fund has strategically increased its stake in KPR Mill to 7.74% from 4.89%. This was achieved by purchasing an additional 2.85% of shares, equivalent to 97.35 lakh shares, through an open market transaction.

Transaction Valued Over Rs 900 Crore
The shares were acquired at an average price of Rs 925 per share, culminating in a total transaction value of Rs 900.54 crore. This substantial investment underscores the mutual fund's confidence in the long-term growth prospects of KPR Mill.

Promoter KP Ramasamy Offloads Significant Stake

Reduction in Promoter Holding
KP Ramasamy, one of the promoters of KPR Mill, sold 1.05 crore shares, equating to a 3.07% stake in the company. The shares were sold at an average price of Rs 925.12 each, resulting in a transaction value of Rs 971.38 crore.

Promoter Stake Declines to 18.3%
Following the sale, Ramasamy's shareholding has decreased from 21.37% to 18.3%. This marks a notable reduction in promoter control, impacting the overall promoter group’s stake in KPR Mill.

Impact on Promoter Group’s Combined Shareholding

Promoter Group Stake Falls to 70.69%
With Ramasamy’s share sale, the combined stake of the promoters and promoter group entities has declined to 70.69% from the previous 73.76%. This shift could influence the company’s governance dynamics and decision-making processes.

Market Reaction and Share Price Movement
Following these transactions, KPR Mill’s stock experienced a minor decline of 0.82%, closing at Rs 1,002.75 on the BSE. The market’s response reflects investor caution amid changes in the company's ownership structure.