630% in 5 years: Citigroup, UTI MF, others buy the dip in this smallcap via Rs 360-crore bulk deal

American multinational investment bank Citigroup bought 57,000 shares worth over Rs 43 crore in Voltamp Transformers on Tuesday via a bulk deal. The shares were purchased at a price of Rs 7,605 apiece which was a 2% discount over the Monday closing price of Rs 7,774.40.

Citigroup’s dip buying in this smallcap multibagger stock comes at a time when the stock has slipped by over 40% in the past 12 months. Notwithstanding an extended underperformance shown by this stock, its returns stand at a steallar 630% over the past 5 years and over 190% in the last three years.

Domestic institutional investors too jumped into the bandwagon to capitalise on the opportunity. Aditya Birla Sun Life Insurance Company, The Prudential Assurance Company, UTI Small Cap Fund and Bajaj Allianz Life Insurance Company took equity worth Rs 65 crore, Rs 116 crore, 40 crore and Rs 100 crore, taking the combined block deal size to Rs 364 crore.

Shares of Voltamp Transformers today ended at Rs 7,508.75, down by Rs 265.65 or 3.42% over the Monday closing price.

With a market capitalisation of Rs 7,596.69 crore on the BSE, Voltamp Transformers are dowen by 47% from the 52-week high of Rs 14,260.30.

Voltamp Transformers Limited is a Vadodara based company and is in the business of design, manufacture, and supplies of transformers for the last 61 years. The company claims to have 70,000 installations in the country and overseas.Voltamp Transformers counter is trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 8,709.7 and Rs 8,408.1, respectively according to Trendlyne data. It has been quite volatile, trading at a 1-year beta of 1.6.Also Read: Jane Street-backed Nebius Group surges 52% intraday after Microsoft pact; 1-year gains top 330%

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