GMM Pfaudler tanks 11%, hits 52-week low after huge block deal

At 09:15 AM; around 5.92 million equity shares representing 13 per cent of total equity of GMM Pfaudler changed hands at the counter on the BSE, the exchange data shows.

Shares of GMM Pfaudler hit a 52-week low of Rs 1,350, as they slipped 11 per cent on the BSE in Friday’s opening trade after over 10 per cent of its equity changed hands on the counter via block deal. The stock of industrial products fell below its previous 52-week low of Rs 1,375.05 touched on August 16.

At 09:15 AM; around 5.92 million equity shares representing 13 per cent of total equity of GMM Pfaudler changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

At 09:29 AM; the stock recouped some of the losses, and was quoting 5 per cent lower at Rs 1,442, as compared to 0.20 per cent decline in the S&P BSE Sensex. In past four trading days, the stock has shed 15 per cent. On Wednesday, too, the stock fell 10 per cent in intra-day trade amid heavy volumes.

On the recent significant increase in the volume of shares of GMM Pfaudler the company clarified that the movement in the volume and price of shares is purely due to market conditions and market driven, and the management of the company is in no way connected with any such movement in volume and price of shares.

As on June 30, 023, Pfaudler Inc, the promoter of GMM Pfaudler, held 6.54 million shares or 14.56 per cent stake in the company, the shareholding pattern data shows.

GMM Pfaudler delivers corrosion-resistant technologies, systems, and services worldwide and remains the preferred choice by consistently providing its customers in the chemical and pharmaceutical industries with innovative and cost-effective solutions.

As on June 30, the company’s order backlog stood at Rs 2,013 crore, down 7 per cent quarter-on-quarter (QoQ), while order intake of Rs 770 crore, down 3 per cent QoQ.

Order intake remains subdued due to general weakness in the chemical sector; however, opportunity pipeline remains strong across all business platforms and geographies; and the management expects that some of the customer decision making which has been delayed will come through in the next quarter. “Our order backlog remains stable translating to about eight months of visibility in the international business and about six months in the India business,” the management said while announcing Q1 results on August 10.