Craftsman Automation Shares in Focus as Promoter Plans ₹486 Crore Block Deal

Craftsman Automation shares are set for significant volatility following news that promoter Srinivasan Ravi intends to divest a portion of his holding. This major secondary transaction, valued at up to ₹486 crore, comes amidst a period of rapid stock re-rating and recent massive capital raises by the company.

Details of the Block Deal and Pricing Structure

The proposed block deal involves the sale of up to 5.25 lakh shares, which represents approximately 2.01% of the company's total equity. The transaction is structured with a base offer size of ₹375 crore, supplemented by a greenshoe option valued at roughly ₹111 crore.

To facilitate the deal, a floor price has been established at ₹9,250 per share. This price reflects a discount of up to 2.9% compared to the stock's closing price on the NSE as of June 22. It is important to note that this is a purely secondary transaction; consequently, the proceeds will go to the promoter, and the company itself will not receive any capital from this specific sale. Following the execution of this deal, Srinivasan Ravi will be subject to a 180-day lock-up period.

Contextualizing the Sale: Post-QIP and Market Performance

This stake sale follows closely on the heels of a highly successful Qualified Institutional Placement (QIP) conducted between June 15 and June 18. Through that QIP, Craftsman Automation raised nearly ₹2,000 crore by allotting 22.98 lakh equity shares to Qualified Institutional Buyers at an issue price of ₹8,700 per share. This fundraising significantly increased the company's paid-up equity share capital to ₹13.08 crore.

The promoter's decision to monetize holdings appears timed with the stock's impressive upward trajectory. Craftsman Automation's shares have surged by approximately 85% over the last year and have seen a 24% rise in 2026 alone. Market analysts view this move as a strategic step to partly realize gains while simultaneously improving market liquidity.

Robust Financial Growth Driving Investor Sentiment

The interest in Craftsman Automation is further bolstered by its stellar quarterly performance. In the most recent quarter, the company reported a massive 74.4% year-on-year surge in net profit, reaching ₹116.4 crore, up from ₹66.8 crore in the previous year. This growth was driven by improved operating performance and a significant reduction in exceptional items, which dropped from ₹10 crore to just ₹54 lakh.

Key financial metrics from the quarter include:

  • Revenue: Increased by 27.3% year-on-year to ₹2,226 crore.
  • EBITDA: Rose 47.2% to ₹358.5 crore.
  • EBITDA Margin: Expanded by over 200 basis points to 16.1%, up from 13.9% in the previous year.

Key Takeaways

  • Major Stake Divestment: Promoter Srinivasan Ravi is selling up to 2.01% of the company via a ₹486 crore block deal at a slight discount to the recent market price.
  • Strategic Timing: The sale follows a successful ₹2,000 crore QIP and coincides with a period of intense stock re-rating and strong margin expansion.
  • Strong Fundamentals: The company's recent 74.4% jump in net profit and improved EBITDA margins continue to underpin investor confidence despite the promoter stake sale.