Kennametal India falls on promoter stake sale plan
Kennametal Inc.is planning to sell 2.89 million equity shares representing 13.16% of the total equity capital of the company on March 14, 2013.
Kennametal India is trading lower by 4% to Rs 550, after the company said that its US-based parent-promoter plans to cut stake in the company from the current 88.61% to comply with the Sebi norms on minimum public share holding requirements via offer-for-sale (OFS) route.
“Kennametal Inc., the promoter of Kennametal India Ltd has submitted a notice of offer for sale of 2.89 million equity shares of face value of Rs 10 each, aggregating to approximately 13.16% of the total paid up equity share capital of the Kennametal India Ltd, by promoter through OFS,” Kennametal India said in a regulatory filing.
The sale shall take place on the separate window of the Stock Exchange and shall commence on March 14, 2013 at 9.15 a.m. and shall close on the same day at 3.30 p.m, it added. According to Sebi guidelines, the public shareholding in a company should be a minimum of 25% by June.
The stock opened at Rs 559 and hit a low of Rs 525 on the BSE. Around 2,218 shares have changed hands on the counter in opening trades.
“Kennametal Inc., the promoter of Kennametal India Ltd has submitted a notice of offer for sale of 2.89 million equity shares of face value of Rs 10 each, aggregating to approximately 13.16% of the total paid up equity share capital of the Kennametal India Ltd, by promoter through OFS,” Kennametal India said in a regulatory filing.
The sale shall take place on the separate window of the Stock Exchange and shall commence on March 14, 2013 at 9.15 a.m. and shall close on the same day at 3.30 p.m, it added. According to Sebi guidelines, the public shareholding in a company should be a minimum of 25% by June.
The stock opened at Rs 559 and hit a low of Rs 525 on the BSE. Around 2,218 shares have changed hands on the counter in opening trades.