Promoter raises stake in small-cap stock after 10% YTD rally despite stock market crash

GRM Overseas promoter Atul Garg's recent share purchase increased the promoter stake to 74.42%, while the stock rose 9.48% YTD despite a crash in the Indian stock market.

Saloni Goel
Updated21 Feb 2025, 04:48 PM IST
Promoter raises stake in small-cap stock after 10% YTD rally despite stock market crash
Promoter raises stake in small-cap stock after 10% YTD rally despite stock market crash

Stock market today: In a show of confidence, the promoter of small-cap company GRM Overseas Limited acquired more shares via the open market earlier this week, according to an exchange filing dated February 21.

The company on Friday, February 21, informed exchanges that one of the promoters Atul Garg picked up 45,000 equity shares of a face value of 2 each, representing a 0.07% stake, of GRM Overseas on Wednesday, February 19.

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Before the acquisition, the promoters cumulatively held 4,46,09,984 shares of the company, amounting to a 74.35% stake. After the share purchase by Garg, the promoter holding has risen to 4,46,54,984 shares or 74.42% stake. Meanwhile, at the end of the December 2024 quarter, promoters owned 4,33,71,984 shares, or 72.79% holding, of the company.

Stock Price Trend

The promoter stake purchase comes at a time when the smallcap stock is trading higher despite a crash in the broader markets.

GRM Overseas share price has gained 9.48% on a year-to-date (YTD) basis as against a 4% decline in the Nifty 50 index and a 17% fall in the Nifty Smallcap 100 index during the same period.

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The stock ended the trade 0.40% lower at 218.70 apiece on the NSE. It touched the day's high of 223.30 and a low of 214.11.

Financial Snapshot

During the quarter ended December 2024, GRM Overseas, involved in milling, processing and marking branded and non-branded basmati rice in the domestic and overseas market, reported a 2.27% decline in Q3 revenue from operations to 382.2 crore from 391.1 crore in the same period last year.

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The profit after tax (PAT) also dipped to 13.5 crore from 15.5 crore on a year-on-year (YoY) basis, recording a 12.9% decline.

The operating performance was also weak, with EBITDA at 23.3 crore in Q3 FY25 versus 26.9 crore in Q3 FY24. The EBITDA margin dropped to 6.1% from 6.9% on a YoY basis.

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First Published:21 Feb 2025, 04:47 PM IST