Clean Science Shares Swing Wild As Spark Avendus ‘Punching Error’ Sparks Frenzy

Promoters are set to offload 24% stake in the company, according to reports

A punching error triggered extraordinary trading volumes in Clean Science & Technology on Thursday.

The company reportedly said that a punching error by Spark Avendus led to trade data showing six crore shares changing hands, though the actual block size was 2.5 crore shares, or 24% of equity, CNBC noted.

This led shares to swing sharply, falling as much as 7% before recovering to gain as much as 6%, in less than two hours of trade. At the time of writing, shares of the chemicals manufacturer were down 0.9% to ₹1,170.1.

Promoters Sell Stake

According to a CNBC-TV18 report on Wednesday, promoters Ashok and Krishna Boob were likely to sell 24% stake in the company via block deals. The share sale was likely to raise ₹2,626 crore with the floor price set at ₹1,030 crore, a 13% discount to Wednesday's close.

As of June 30, Clean Science’s promoters held 74.97% stake in the company.

According to the deal terms, a three-year lock-up has been agreed upon, with exceptions for inter-se transfers among promoters, sales leading to a change of control, or transactions under a court-approved scheme.

Spark Institutional Equities, a subsidiary of Avendus Capital, and JP Morgan are acting as joint brokers for the deal.

What Is The Retail Mood?

Clean Science & Technology was the second most trending stock on Stocktwits, even as retail sentiment remained ‘neutral’. It was ‘bullish’ a week ago.

Year-to-date, the stock has been under some selling pressure, losing over 18% in value.

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