Bata shares drop following promoter stake sale
Bata India’s share prices have dropped significantly since the business’ promoter chose to divest a 2.8% stake in the business last week but the business says it remains confident of and committed to continued growth.
The footwear brand has seen its shares drop for the past week. By June 8, Bata India’s stock had fallen by 8% since the stake sale, Business Standard reported. The drop follows on from six months of underperforming stock compared to the benchmark of the market.
“Bata BN BV continues to be fully committed to Indian consumers and deeply values their patronage that has made Bata India Ltd, the largest footwear brand in India over the last eight decades and is eager to see the business continuing to grow in India,” the company said in a statement, Business Standard reported.
According to Bata, the promoter stake sale makes up just a small part of the entire promoter shareholding and its sale will not result in any form of material reduction to the promoter holding from the company. Moreover, Bata BN BV will continue to hold less than a 50.1% share in the Indian subsidiary of the international business.
The business is optimistic for share value growth in the near future as the Indian footwear market is expected to experience a double digit compound annual growth rate from the present until the 2026 financial year. Per capita footwear consumption is also expected to rise and Bata aims to capitalise on this with celebrity endorsements and product innovations.
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