MUMBAI: GMM Pfaudler shares traded 10% lower in ₹4,717 in early trading on Tuesday. The company had announced an Offer to Sell (OFS) at a minimum price of ₹3,500, a 33.22% discount at its closing Friday ₹5,241.10 a piece.
In a press release, the company said promoters Pfaudler Inc. and Urmi Patel are selling 25.71 lakh shares or 17.59% of the total capital with the option to additionally sell 15.22 lakh shares (10, 41%).
“Pfaulder Inc., Millars Machinery Company Pvt. Ltd and Urmi Patel, which are part of the promoter group, propose to sell up to a total of 25.71,429 shares of equity owned by the sellers in GMM Pfaudler Ltd, representing approximately 17.59 % of the company’s total issued and paid-up share capital on September 22, 2020 for non-retail investors only and on September 23, 2020 for retail investors and for non-retail investors who choose to roll over their unallocated offerings with an additional option to additionally sell up to 15,21,671 shares, shares representing approximately 10.41% of the company’s total paid-up capital stock, “the company said in a statement to the exchanges.
GMM Pfaudler Ltd is a provider of critical applications engineering equipment and systems in the global pharmaceutical and chemical markets. In a note from Anand Rathi Research in January, he had said that being the leader, with a dominant market share of 60%, GMM Pfaudler will be a big beneficiary as great prospects open up in agro and specialty chemicals. “His diversification into heavy engineering and drying and blending would increase his income. Its strong fundamentals are supported by its history of positive operating cash flows, even in economic downturns, “he said.
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