GMM Pfaudler shares remained under-pressure, hitting a lower circuit of 10 percent today, after promoters said they will sell nearly 26 lakh shares worth Rs 1,433 crore at a nearly 30 percent discount (Rs 3,500) to yesterday's market price.

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At 9:37 am, the stock traded at Rs 4,682.70 per share on the NSE.

The base offer is for 25.71 lakh shares (17.59 percent), with an oversubscription option of 15.22 lakh shares (10.41 percent).

The promoters of the company Pfaudler Inc, Millars Machinery and Urmi Patel, are the sellers.

The OFS will be available for the non-retail investors on September 22 (today) and for retail investors on September 23.

In the last year, the shares of the company have zoomed over 240 percent, while this year it has rallied 148 percent to current market price.

On August 20, GMM Pfaudler said it will buy 54 percent in the parent Pfaudler Group, where the latter will retain 20 percent and the Patel family will acquire about 26 percent in the parent.

Also read: Bottomline: Could GMM Pfaudler’s acquisition of its parent have been simpler?

Currently, the Patel family owns 24.56 percent equity and Pfaudler Inc owns 50.4 percent equity in the company, respectively.

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First Published:Sept 22, 2020 10:05 AM IST