GMM Pfaudler shares sink 18% today. Here's why

Shares of GMM Pfaudler plummeted 18 per cent in Friday's trade amid a media report that suggested promoter Pfaudler Inc was looking to sell a majority stake in GMM Pfaudler for Rs 2,278 crore in block deal today.  

As per Mint, Pfaudler Inc was looking to sell to 1.34 crore shares of the company, representing 29.88 per cent stake at a floor price of Rs1,700 apiece, which was at a 11.67 per cent discount to the company's closing price on Thursday.

Following the report, the scrip sank 18.42 per cent Rs 1,575 on BSE. Against a buy order of 33,281 shares on BSE, the counter had sell orders of 3,42,202 shares. A total of 16.89 shares changed hands on BSE so far against a two-week average of 7,133 shares.  On NSE, a total of 1,03,17,060 shares changed hands so far, with a turnover of Rs 1,737.38 crore.

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Pfaudler Inc held 1,43,30,208 shares or 31.88 per cent stake in GMM Pfaudler as of September 30, as per BSE. With the stake sale, total promoter stake --- which stood at 56.06 per cent  at September end, will drop to 26.18 per cen, as per Mint. Other promoter shareholders held a 24.18 per cent stake in the company, as of September 30. Axis Capital was said to be the sole broker to the block trade.

Meanwhile, Shyam Sekhar, Chief Ideator and Founder at ithought Advisory overnight posted a thread to his old September 2020 posts on GMM Pfaudler.