Promoters of GMM Pfaudler Ltd. plan to sell stake worth up to Rs 1,433 crore in the maker of industrial equipment, days after the firm said it will buy a controlling stake in its American parent.
U.S.-based Pfaudler Inc, Millars Machinery Co. Pvt. and Urmi Patel plan to sell up to 40.93 lakh shares or 28% stake at a floor price of Rs 3,500 apiece—a discount of about 33% to current market price—through an offer-for-sale, according to an exchange filing. This offer includes an oversubscription option for another 15.22 lakh shares or 10.41% stake.
If the offer for sale is oversubscribed, the promoters’ stake will fall from 75% to 47%.
The offer will open for non-retail investors on Sept. 22 and for retail investors on Sept. 23. Shares of the glass-coated steel equipment makers have surged nearly threefold this year even as Nifty 500 has fallen by 5.67%.
On Aug. 20, GMM Pfaudler said…