Timken India shares plunge 11% amid block deals; promoter Timken Singapore likely seller
According to BSE, 89.14 lakh shares worth Rs 2,780 crore exchanged hands as of 10.05 am while 32.26 shares amounting to Rs 1,027.61 crore were traded on the NSE.
- Jun 20, 2023,
- Updated Jun 20, 2023 10:44 AM IST
Shares of Timken India plunged about 11 per cent during the early trading session on Tuesday after its Singapore parent sold a significant stake in the company through a bulk deal. The heavy trading volume on both the exchanges suggested that the bulk deal was executed. According to the media reports, Timken Singapore, the parent company of Timken India, offloaded 8.4 per cent stake, or 63 lakh equity shares of the company on Tuesday via a block deal amounting to Rs 1,890 crore. The seller has a 90-day lockup, the reports added. According to the data from BSE, 89.14 lakh equity shares worth Rs 2,780 crore exchanged hands as of 10.05 am on Tuesday. Similarly, more than 32.26 equity shares amounting to Rs 1,027.61 crore were traded on the National Stock Exchange (NSE) as of the same time. However, details of buyers could not be ascertained by the time of writing the report. Shares of Timken India slumped over 11 per cent to Rs 3,100.30 on Tuesday and the company's market capitalisation dropped below Rs 25,000 crore. However, it reported a brief recovery as the session progressed. The scrip had settled at Rs 3,485.50 on Monday. BofA Securities is the manager to the issue and according to its term sheet, the floor price was fixed at 3,000 a share, a 14 per cent discount to Monday’s closing price. Timken Singapore owned 67.8 per cent in the Indian arm as of the quarter ended on March 31, 2023. Timken India (erstwhile known as Tata Timken) is primarily into manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. It also provides maintenance contract services and refurbishment services. Timken India would be key beneficiary from continuous spends on infra and railway and least likely to be disrupted from EV evolution, further growth would be supported by wagon addition by Indian Railways, push to shift production by parent company to India, given low-cost benefits and investment of Rs 600 crore over next 24 months, said JM Financial. JM Financial remains positive on Timken India as it is among the top picks of the brokerage firm from the Industrial sector with a target price of Rs 3,379. However, Kotak Institutional Equities has a 'sell' rating on the stock with a target price of Rs 2,500 on the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: Wipro shares gain as IT firm says share buyback to open on June 22
Shares of Timken India plunged about 11 per cent during the early trading session on Tuesday after its Singapore parent sold a significant stake in the company through a bulk deal. The heavy trading volume on both the exchanges suggested that the bulk deal was executed. According to the media reports, Timken Singapore, the parent company of Timken India, offloaded 8.4 per cent stake, or 63 lakh equity shares of the company on Tuesday via a block deal amounting to Rs 1,890 crore. The seller has a 90-day lockup, the reports added. According to the data from BSE, 89.14 lakh equity shares worth Rs 2,780 crore exchanged hands as of 10.05 am on Tuesday. Similarly, more than 32.26 equity shares amounting to Rs 1,027.61 crore were traded on the National Stock Exchange (NSE) as of the same time. However, details of buyers could not be ascertained by the time of writing the report. Shares of Timken India slumped over 11 per cent to Rs 3,100.30 on Tuesday and the company's market capitalisation dropped below Rs 25,000 crore. However, it reported a brief recovery as the session progressed. The scrip had settled at Rs 3,485.50 on Monday. BofA Securities is the manager to the issue and according to its term sheet, the floor price was fixed at 3,000 a share, a 14 per cent discount to Monday’s closing price. Timken Singapore owned 67.8 per cent in the Indian arm as of the quarter ended on March 31, 2023. Timken India (erstwhile known as Tata Timken) is primarily into manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. It also provides maintenance contract services and refurbishment services. Timken India would be key beneficiary from continuous spends on infra and railway and least likely to be disrupted from EV evolution, further growth would be supported by wagon addition by Indian Railways, push to shift production by parent company to India, given low-cost benefits and investment of Rs 600 crore over next 24 months, said JM Financial. JM Financial remains positive on Timken India as it is among the top picks of the brokerage firm from the Industrial sector with a target price of Rs 3,379. However, Kotak Institutional Equities has a 'sell' rating on the stock with a target price of Rs 2,500 on the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: Wipro shares gain as IT firm says share buyback to open on June 22