India's GMM Pfaudler falls over 18% on report promoter selling bulk stake (updated)

Gmm Pfaudler

16/12/2022 08:51

(Adds details)
       BENGALURU, Dec 16 (Reuters) - Shares of GMM Pfaudler
 GMMP.NS  fell as much as 18.1% on Friday, their worst intraday
percentage fall in nearly five years, after a report said that
one of its promoters will sell the bulk of its stake in India's
largest glass-lined equipment maker.
     Pfaudler Inc, which holds a 31.9% stake in GMM Pfaudler,
will sell about 29.88% of its holding via block deals at a floor
price of 1,700 rupees, Mint newspaper reported. 
    The floor price is at a discount of 11.7% to the stock's
close of 1,924.70 rupees on Thursday, 
    Multiple block deals were reported in the range of 1,621
rupees to 1,744 rupees, Refinitiv Eikon data showed.
        In a September 2020 analyst call, Tarak Patel, GMM
Pfaudler's managing director, had said that promoters were
"locked in for the next three years" and that there would be "no
further dilution of shares, there will be no liquidity event."
    GMM Pfaudler did not respond to Reuters' queries on the
promoter's stake sale. 
    Just a month before the analyst call, in August 2020, GMM
Pfaudler announced the acquisition of a majority stake, both
directly and through a subsidiary, in the global business of the
Pfaudler Group.
    About 11.7 million shares changed hands as of 1:56 p.m. IST,
against the 30-day average of 123,243 shares. The scrip was last
down 15.4%.
 (Reporting by Nallur Sethuraman in Bengaluru; Editing by Janane
Venkatraman)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))