Amara Raja 'battery' down

Amara Raja Batteries is among the top five losers on the BSE since the opening bell. It opened over 3.5% lower at Rs.755.10 and went down to an intraday low at Rs.736.65, down 6%. Its 10% LC for the day is at Rs.705.40.

Data shows a huge bulk deal happened this morning. Around 3.38 crore shares or 19% of total equity of the company changed hands on the BSE and NSE combined though names of buyers and sellers is not yet known.

Speculation is that Clarios ARBL Holding which held 24% stake or 4 crore shares in the company, was to sell 1.71 crore shares today and the floor price was fixed at Rs.746/share.

Though the company posted a decent set of earnings for Q4FY21, there is rising concern that lower demand could impact the margins in the coming months and in the long run, analysts opine that with lithium battery costs coming down, this could be the new threat on the horizon for industrial battery makers unless they too invest in R&D and set up lithium battery making facilities.