Goldman Sachs, Nippon India Mutual Fund, other big investors buy stake in FMCG stock Sapphire Foods. Should you buy?

Big investment firms including Goldman Sachs, Nippon India Mutual Fund, ICICI Prudential Mutual Fund, ICICI Prudential Life Insurance Company, ITI Mutual Fund, etc. have invested in FMCG company Sapphire Foods India. These investment firms have invested in the FMCG company through block deal on Thursday. The details of the deal is available on BSE's website which is as follows:

Goldman Sachs stake buy in Sapphire Foods

Goldman Sachs (Singapore) has bought 74,240 Sapphire Foods shares via block deal on Thursday. The global investment firm bought these shares paying ₹1,347 per share. Hence, Goldman Sachs has made an investment of ₹10,00,01,280 or ₹10 crore in the FMCG company.

Nippon India Mutual Fund

Fund managers of small-cap, multi-cap and flexi-cap of the AMC has made investment in Sapphire Foods through a block deal on Thursday. Nippon India Small Cap Fund has bought 32,000 shares of the company paying ₹1,347 apiece. So, Nippon India Small Cap Mutual Fund has invested ₹4,31,04,000 in Sapphire Foods India Ltd. Nippon India Multi Cap and Nippon India Flexi Cap Mutual Fund bought 45,500 and 27,158 company shares respectively at same ₹1,347 apiece. This means, Nippon India Mutual Fund's multi-cap arm has invested ₹6,12,88,500 whereas its flexi-cap arm has invested ₹3,65,81,826. So, in total, Nippon India Mutual Fund has made an investment of near ₹14 crore in the FMCG company.

ICICI Prudential shareholding

As per the BSE block deal details, both mutual fund and life insurance arm of the company have invested in Sapphire Foods India Ltd. ICICI Prudential Mutual Fund bought 8,90,869 Sapphire Foods shares in two separate block deals paying ₹1,347 apiece. This means, ICICI Prudential Mutual Fund made an investment of ₹1,20,00,00,543 or ₹120 crore.

Likewise, ICICI Prudential Life Insurance Company bought 185,599 Sapphire Foods shares paying the same ₹1,347 apiece leading to net investment to the tune of ₹25,00,01,853 or ₹25 crore.

Thus, ICICI Prudential has made net investment of near ₹145 crore in yesterday's block deal.

Apart from these, some more domestic institutional investors like Mirae Asset Mutual Fund, ITI Mutual Fund, Kotak India Mid Cap Fund, Bajaj Allianz Life Insurance Company, Government of Singapore, HSBC Global Investment Fund, etc. have also bought fresh stake in this FMCG company.

Should you buy Sapphire Foods shares now?

Speaking on Sapphire Foods share price outlook, Ravi Singhal, CEO at GCL Securities said, "Currently, Sapphire Foods share price is range bound in ₹1,300 to ₹1,450 apiece levels. Once, it gives breakout above ₹1,450 on closing basis, it may go up to ₹1,750 per share levels in short to medium term. Those, who have this stock in their portfolio are advised to hold the stock keeping trailing stop loss below ₹1300 whereas fresh buyers can buy the stock at current market price with strict stop loss below ₹1,300 and accumulate more if it falls to below ₹1,350 apiece levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.