Foreign promoters of Timken India are likely to sell 6.6% of stakes in the company through block deals on Tuesday, according to a term sheet issued by BofA Securities India. The term sheet indicates that the floor price has been set at Rs 3,550 per share, which is a 10.2% discount to Monday’s closing price of Rs 3,956. The sale at the floor price could fetch Timken’s parent company around Rs 1,775 crore or $213 million.
The stock has rallied 47% in the last three months, compared to a 3.14% gain in the Sensex.
In June last year, Timken Singapore sold about a 10.1% stake, or 76 lakh shares, in its Indian listed arm for Rs 2,362 crore through an open market transaction. As of March 31, 2023, Timken Singapore owned a 67.8% stake in the company, which was subsequently reduced to 57.70%.
Timken then said the net proceeds from the sale were to be utilised to support its 2023 capital allocation priorities, with a specific focus on share repurchases. The company had earlier announced plans to set up a new manufacturing facility in Gujarat to produce Spherical Roller Bearings (SRB), Cylindrical Roller Bearings (CRB), and components.
Denial of responsibility! NewsConcerns is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.