The stock began to fall after GMM Pfaudler announced on Monday that promoters plan to sell 17.6 per cent stake in the company
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GMM Pfaudler promoters Pfaudler Inc, Millars Machinery, and Urmi Patel are selling 17.59 per cent of the company's total equity
Going ahead, most analysts expect the mid-and small-cap segments to continue doing well as compared to their large-cap peers, which they feel are now fairly valued
The company expects to complete the transaction by November this year
Process equipment manufacturer GMM Pfaudler on Thursday said it has acquired a 54 per cent stake in its parent firm Pfaudler Group for a consideration of around $27.4 million
The stock had rallied 95 per cent in the past two months
GMM Pfaudler is a leading supplier of process equipment to the pharmaceutical and chemical industry segments.
In Q3FY20, the company's Ebitda improved significantly by 46 per cent YoY at Rs 30.4 crore, while margins expanded 400 basis points to 20 per cent versus 16 per cent in Q3 of last year.
The stock rallied 9% to Rs 1,247 on Friday, extending its Thursday's 4% gain on the BSE in an otherwise range-bound market on expectations of strong earnings growth