Timken India surges 6% after 5 million shares change hands via block deals

Timken India block deal: Till 09.34 AM, around 5.02 million shares, representing 6.6 per cent of total equity of the company, had changed hands on the BSE

Timken India block deal news: Shares of Timken India surged 6 per cent to Rs 4,250 on the BSE in Tuesday's intraday trade after 5 million shares, representing 6.6 per cent of total equity of the abrasives & bearings company, changed hands via block deals.

Till 09.34 AM, around 5.02 million shares of Timken India had already traded on the BSE, exchange data shows. The names of the buyers and sellers, however, could not be ascertained immediately.

According to reports, Timken India's promoter (Timken Singapore) was looking to offload 6.6 per cent stake (5 million shares) in Timken India via block deals on Tuesday, May 28. The shares are being offered at a floor price of Rs 3,550 per share, a discount of 10.2 per cent to Monday's closing price. The sale at the floor price could fetch around Rs 1,775 crore to the promoters.

As on March 31, 2024, the promoter held 57.7 per cent stake in Timken India, shareholding pattern data shows.

Shares of Timken India had hit a record high of Rs 4,350 on May 24, 2024. In the past three months, the stock has outperformed the market by surging 30 per cent as compared to 1 per cent rise in the S&P BSE Sensex. Further, in the past six months, it has appreciated by 43 per cent, as against 14 per cent rally in the benchmark index.

Timken India's active operations are in anti-friction bearings, mechanical power transmission products, and related services business. The company caters to an entire spectrum of bearings including Tapered Roller Bearings (TRB), Spherical Roller Bearings (SRB), Plain Bearings, Cylindrical Roller Bearings (CRB), Needle Bearings, and Slewing Rings with a focus on localised manufacturing having facilities in Jamshedpur and Bharuch.

"The Bharuch facility is currently expanding its manufacturing capacity by adding SRBs and CRBs. The company would be investing approx. Rs 600 crore towards this expansion and commercial operation is expected to start in January 2025," Timken India said in its annual report.