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The Patel family has emerged as the single largest shareholder in GMM Pfaudler Ltd. after another promoter Pfaudler Inc divested 17.32 percent of its stake in the engineering products manufacturer on Friday for around Rs 1,324 crore through open market deals.

According to an update by the company, Pfaudler Inc. – controlled by private equity fund DBAG Fund VI – sold 77.85 lakh equity shares (17.32 percent) of the company through bulk deals at Rs 1,700 per share.

DBAG has been a financial investor in the company since 2014.

The Patel family has entered into an arrangement to purchase 4.49 lakh equity shares (1 percent) from Pfaudler Inc at Rs 1,700 per share, subject to regulatory approvals, through an inter–se promoter transfer.

As of the September quarter, the Patel family held a 24.18 percent stake or 1.08 crore equity shares in GMM Pfaudler Ltd. while GMM Pfaudler Inc (DBAG) held a 31.88 percent stake or 1.43 crore shares.

Post the stake sale by DBAG through open market deals, the Patel family has now become the single largest promoter shareholder of the company after 34 years.

DBAG's shareholding has come down to 14.56 percent or 65.44 lakh shares. Also, the shareholding of foreign and domestic institutional investors has increased.

According to the bulk deal data, Plutus Wealth Management, Aditya Birla Sun Life Mutual Fund, and Integrated Core Strategies (Asia) Pte were among the major buyers of shares of GMM Pfaudler on Friday.

The stock had decreased by over 15 percent to close at Rs 1,643.65 per piece on the BSE on Friday.

GMM Pfaudler Ltd. delivers corrosion-resistant technologies, systems, and services worldwide to its customers in the chemical and pharmaceutical industries. It has 16 manufacturing locations with a sales and service network and employs more than 1,800 people across four continents.

Shares of the company ended 0.76 percent lower at Rs 1,632 on Monday.

(Edited by : Rukmani Krishna)