Timex Share Price Hits Lower Circuit As Promoter Announces Plan To Offload 15% Stake

Timex Group India Ltd.'s share price plummeted by 5%, hitting the lower circuit limit on Wednesday, after it was announced that promoter Timex Group Luxury Watches B.V., Netherlands will be offloading 15% stake.

The sale, valued at Rs 132 crore, is set to take place via an offer for sale on June 25 and June 26.

Currently, the promoter entity holds 74.93% stake in Timex Group, as per the shareholding data available on BSE. In an exchange filing on Tuesday, the Dutch promoter revealed plans to sell up to 75,71,250 equity shares, each with a face value of Rs 1, representing a 7.50% stake as the base offer size.

The floor price for the offer has been set at Rs 175 per share, with Kotak Securities Ltd. acting as the settlement broker on behalf of the seller's broker. Additionally, there is an option to sell up to another 7,571,250 equity shares, representing an additional 7.5% stake in the company. If this option is exercised, the promoter entity will offload a total of 15% of its stake in Timex Group.

The scrip fell as much as 5% to Rs 251 apiece. It pared losses to trade at the same level as of 09:41 a.m. This compares to a 0.55% advance in the NSE Nifty 50.

It has risen 59.47% in the last 12 months. Total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 48.