Timken India falls on share-sale plan

Timken India made the announcement during market hours today, 14 January 2013.

Meanwhile, the BSE Sensex was up 169.77 points, or 0.86% to 19,833.41.

On BSE, 33,006 shares were traded in the counter as against an average daily volume of 33,995 shares in the past one quarter.

The stock hit a high of Rs 198.95 and a low of Rs 190.60 so far during the day. The stock had hit a 52-week high of Rs 269.15 on 17 April 2012. The stock had hit a 52-week low of Rs 173.05 on 12 January 2012.

The small-cap stock outperformed the market over the past one month till 11 January 2013, rising 4.06% compared with the Sensex's 1.43% rise. The scrip, however, underperformed the market in past one quarter, falling 6.25% as against Sensex's 4.57% surge.

The company has an equity capital of Rs 63.73 crore. Face value per share is Rs 10.

Timken India said its board of directors at its meeting held today, 14 January 2013 considered a public issuance, private placement or a combination thereof, of up to 42.65 lakh shares representing 6.69% stake of the company. US-based Timken Company, a major manufacturer and supplier of bearings, alloy steel, power transmission components etc held 80.02% in Timken India (as on 30 September 2012).

Timken India said any offering or placement and its timing will be subject to market conditions, obtaining necessary shareholder and regulatory approvals. The final decision on the timing for the proposed issue will be taken by the board or any committee of the board of directors constituted / to be constituted for the purpose. There can be no assurance that the company will proceed with the proposed issue, it said.

Under the Securities Contracts (Regulation) Rules, 1957, private-sector companies must increase public shareholding to at least 25% by 3 June 2013, while the deadline for state-run firms is 13 August 2013.

Timken India's net profit fell 6.9% to Rs 13.30 crore on 1% growth in total income to Rs 170.36 crore in Q2 September 2012 over Q2 September 2011.

Powered by Capital Market - Live News