GMM Pfaudler slips 10% after fixing OFS floor price at discount

GMM Pfaudler promoters Pfaudler Inc, Millars Machinery, and Urmi Patel are selling 17.59 per cent of the company's total equity

Shares of GMM Pfaudler were locked in 10 per cent lower circuit at Rs 4,717 on the BSE on Tuesday after the company announced an offer for sale (OFS) by the promoters at a floor price of Rs 3,500 per share. The floor price is a 33 per cent discount to its Monday’s closing price of Rs 5,241 on the BSE.

GMM Pfaudler promoters Pfaudler Inc, Millars Machinery, and Urmi Patel are selling 2.57 million equity shares, or 17.59 per cent of the total equity of the company, with an option to additionally sell 1.52 million or 10.41 per cent. READ THE EXCHANGE FILING HERE

For non-retail investors, OFS will open today and for retail investors, the date of the opening of the offer is September 23 (Wednesday).

With the today’s fall, the stock of India’s largest manufacturer of glass-lined equipment has declined 32 per cent from its 52-week high level of Rs 6,913.85, hit on August 12, 2020. The stock touched a 52-week low of Rs 1,358 on November 1, 2019.

GMM Pfaudler caters to the pharmaceuticals, specialty chemicals, and agrochemicals. Most of the players in these industries have been witnessing favourable demand for their products and continue to be in capacity addition mode. The company is a leading supplier of process equipment to the pharmaceutical and chemical industries.

Till 09:30 am, a combined 12,000 equity shares had changed hands and there were pending sell orders for around 680,000 shares on the NSE and BSE.