Shares of Avalon Technologies came under pressure on Wednesday after promoter groups sold a large chunk of shares through block deals.

Around 40.5 lakh shares, representing about 6.06 per cent of the company’s equity, changed hands at Rs 2,181 apiece, valuing the transaction at about Rs 883 crore. The stock fell as much as 5.2 per cent to an intraday low of Rs 2,180 before recovering some losses to trade about 1.4 per cent lower around midday.

CNBC-TV18 had reported that promoters Bhaskar Srinivasan, BBS Family Trust and KBS Family Trust were likely to sell up to 6 per cent in the EMS firm, in a deal worth around Rs 861.9 crore at an indicative price of Rs 2,150 to Rs 2,302 per share, with a 180-day lock-up on further sales.

The company issued a clarification to the exchanges, stating that the KBS Family Trust belongs to Kavya Bhaskar Srinivasan and confirming that Kunhamed Bicha’s promoter group is not selling shares.

Trading volumes crossed six million shares across NSE and BSE. Nomura has a Buy rating on the stock with a target price of Rs 2,767, citing the company’s Zollner joint venture for European expansion.