Shares of Timken India fell as much as 11 percent on Tuesday after nearly 10 percent of the company's equity changed hands in a large trade. 84.5 lakh shares of the company exchanged hands in the transaction, data from the exchanges show. The transaction is valued at Rs 2,629 crore.

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Buyers and sellers in the transaction are unknown as of yet. Sources had told CNBC-TV18 on Monday that the company's parent, Timken Singapore Pte, had decided to sell 63 lakh shares or 8.3 percent of the total equity of the company through a block deal. The floor price of the transaction was set at Rs 3,000 per share, which is a 14 percent discount on Monday's closing price.

Based on the March 2023 shareholding pattern, Timken Singapore Pte. held 67.8 percent shares in the company. Among other major funds that have a stake in the company include PGIM India Trustees Pvt. Ltd., SBI Smallcap Fund and Nippon Life India Trustee Ltd.

Timken India (previously known as Tata Timken) is primarily into manufacturing and distribution of tapered roller bearings, components, and accessories for the automotive sector and the railway industry. It also provides maintenance contract services and refurbishment services.

Shares of Timken India fell as much as 11.1 percent to Rs 3,100.30 on Tuesday, marking the steepest fall in the stock in 28 months. The last time the stock fell to this extent was back in February 2021.

Today's fall has also meant that the stock has given up all the gains it has made this year. Due to this transaction, trading volumes in the stock are 135.5 times higher than its three-month full-day average.

Shares have recovered from opening lows, currently trading 7.6 percent lower at Rs 3,223.

First Published:Jun 20, 2023 9:44 AM IST