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The company’s managing director Varun Berry has been using this opportunity to sell a portion of his holdings. He has sold Rs 68.4 crore worth shares since the beginning of FY21 according to stock exchange filings. Over the past year, he has sold shares worth Rs 105 crore.
Answering an ET query, Berry said that the proceeds from the share sale will be utilised towards the next set of company ESOPs.
Berry, who has been responsible for a major turnaround in the fortunes of the Wadia group company, had 1.09 lakh shares at the beginning of April. Since then he has been allotted another 2.57 lakh shares of the company. But he now owns 1.77 lakh shares worth approximately Rs 67.5 core.
Shares of Britannia have seen a dream run over the past few months as a nationwide lockdown led people to consume more packaged food. In the June quarter, the company’s sales volume grew by 21.5% year-on-year, highest in the past five years. Its revenue grew by 26.7% and net profit rose by 118%. The company’s stock is trading near-record high price and valuation. At Wednesday’s closing price of Rs 3,814.1 on the BSE, the stock was traded at 50 times estimated FY21 earnings.
Since Berry took over in January 2013, the stock has gained 16 times. He was re-appointed as managing director in May 2018 for a term of five years
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3 Comments on this Story
Rajeev Maheshwari181 days ago
Wise people keep money in their bank account. Fools buy shares at peak and incur a loss of their hard-earned money. Company MD must be knowing day to day Company performance and therefore he is taking such action. However common investors do not know /unaware such transaction.
Mihir181 days ago
It is wise to encash if the MD is not attached in future. Same logic for MR A Puri of HDFC bank sold out his shares. All these indicates crashing of market may be near future. Cautious investment requied
Mehta Parag181 days ago
Means MD is not sure for same performance from company in next few months.