Shares of GMM Pfaudler nosedived 10 per cent to hit lower circuit at Rs 4,717 on Tuesday on promoters plan to sell stake worth up to Rs 1,433 crore in the company. The glass-lined equipment manufacturer has announced an offer for sale (OFS) by the promoters at a floor price of Rs 3,500, a 33 per cent discount to its Monday's closing price of Rs 5,241.
Weighed down by the development, GMM Pfaudler share price declined as much as 10 per cent to hit day's low of Rs 4,717 against previous closing price of Rs 5,241.1 on the Bombay Stock Exchange.
In a similar trend, GMM Pfaudler shares tumbled 10 per cent to Rs 4,682.70 apiece on the National Stock Exchange.
The company in an exchange filing on Monday said that its promoters, US-based Pfaudler Inc, Millars Machinery Co. Pvt. and Urmi Patel will offload 25.71 lakh shares or 17.59 per cent stake at a floor price of Rs 3,500 apiece through an offer for sale. The OFS includes an oversubscription option for another 15.22 lakh shares or 10.41 per cent stake.
Currently, Patel family holds 24.56 per cent shares in the company while Pfaudler Inc owns a 50.4 per cent stake.
For non-retail investors, the OFS opened today while retail investors will get an offer to bid on Wednesday. The OFS started on a separate window of the stock exchanges commencing at 9:15 AM and closed at 3:30 PM (Indian Standard Time) on the same date.
For the April-June quarter of current fiscal, GMM Pfaudler reported consolidated net profit of Rs 19.19 crore which rose by 8.5 per cent as compared to Rs 17.69 crore in the same quarter last year. Consolidated net revenue increased by 2.77 per cent to Rs 154.43 crore from Rs 150.26 crore in Q1 FY20.
By Chitranjan Kumar