GMM Pfaudler Shares Hit 52-Week Low After Pfaudler Inc. Sells Stake In Large Trade
Pfaudler Inc. sold and ChrysCapital purchased stake in the company.
Shares of GMM Pfaudler Ltd. tumbled over 9% to hit a 52-week low on Friday after a large trade.
Pfaudler Inc., which is a company held by DBAG Fund VI, a private equity fund advised by Deutsche Beteiligungs AG has sold about 44.51 lakh shares or 9.90% equity in GMM Pfaudler Ltd. through bulk deals, according to an exchange filing.
On the other hand, a 9.9% equity stake in the company was purchased by funds affiliated with ChrysCapital, an India-focused investment firm with $5.0 billion of assets under management.
The Patel family continues to remain the largest shareholder of the company and said that they will purchase the remaining 1% equity stake from DBAG Fund VI at Rs 1,700 per share as agreed in December 2022, subject to regulatory approvals.
Consequently, Malte Woweries and Harsh Gupta will resign as the non-executive directors of GMM Pfaudler Ltd., as nominated by Pfaudler Inc.
Shares of the company fell 5.01% to Rs 1,445.95 apiece as of 9:30 a.m., compared to a 0.21% decline in the NSE Nifty 50. The stock declined as much as 9.60% intraday to hit a 52-week low of Rs 1,376 apiece.
It has fallen 7.88% on a year-to-date basis. The total traded volume stood at 2,700 times its 30-day average. The relative strength index was 43.9.
Five analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 40.2%.
