DOMS Industries may see a block deal today but another factor keeps the stock in focus too

Shares of DOMS Industries are in focus on Thursday, December 19, ahead of a potential block deal that is likely to take place in the stock. But there is another factor that could have a bearing on how the stock moves in today's trading session.

Thursday's session will mark the end of its one-year shareholder lock-in period. This will free up as many as 2.7 crore shares of DOMS Industries for trading. The number of shares that are freed up for trading today amount to 45% of the company's outstanding equity, according to Nuvama Alternative & Quantitative Research.

It must be specified that the end of a shareholder lock-in period does not mean every share that gets freed up to trade will be sold in the open market, but they only become eligible to be traded.

Shares of DOMS Industries have more than doubled in value over the last 12 months, rising 130%.

Besides the lock-in period, a block deal worth nearly ₹764 crore is likely to take place in the stock today.

F.I.L.A, who held a 30.58% stake in the company as of September 30, is likely to sell up to 4.5% equity in the company through this deal.

The base size for the deal is worth ₹509.7 crore or 3.05% with an option to upsize it by another ₹254.3 crore or 1.52%.

Floor price for the deal has been fixed at ₹2,755 per share, which is a 9.6% discount to Wednesday's closing price.

Shares of DOMS Industries ended little changed on Wednesday at ₹3,048.

(Block Deal Newsbreak by Vivek Iyer.)