Pfaudler Inc. has sold 13.56 percent equity of GMM Pfaudler via block deals on Friday, the glass-lined equipment manufacturer mentioned in an exchange filing. Pfaudler Inc. sold 60.94 lakh shares via multiple block deals.

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Among the buyes in the deal included Geranium Investments Ltd., Atreides Investments B.V. and Infinity Partners, which are funds controlled by Chrys Capital.

The stock fell as much as 11 percent to a 52-week low of Rs 1,350 before bouncing from those levels.

As a result of Pfaudler's shareholding falling below 10 percent in the company, two of the company's non-executive directors - Malte Woweries and Harsh Gupta have resigned.

Notably, the stock had seen a sharp rally last Friday, August 11, when it gained nearly 12 percent in a single session and turned positive on a year-to-date basis after the company announced its earnings for the quarter ended June 2023. But since then, it has seen a gradual correction over the past week.

Last Friday, GMM Pfaudler said that its consolidated revenue for the June quarter stood at Rs 912 crore, up 23 percent from Rs 739 crore it reported during the same period last year, on the back of strong execution.

The company’s net profit remained largely flat compared to last year at Rs 54 crore from Rs 61 crore.

Operating profit, or EBITDA, increased 35 percent to Rs 132 crore during the quarter compared with Rs 98 crore a year ago. EBITDA margin also expanded 130 basis points to 14.5 percent. EBITDA refers to earnings before interest, tax, depreciation and amortisation.

Shares of GMM Pfaudler are significantly off the day's low, currently trading 1.3 percent lower at Rs 1,,502.

First Published:Aug 18, 2023 11:05 AM IST