GMM Pfaudler Slumps by Limit as Founders Pare Stake at Discount
GMM Pfaudler plunged by the daily 10% limit after founders offered to sell shares at a discount.
(Bloomberg) -- GMM Pfaudler Ltd. plunged by the daily 10% limit in Mumbai after founders of the world’s largest producer of glass-lined reactors for pharmaceutical and chemical industries offered to sell shares at a discount.
U.S.-based Pfaudler Inc, Millars Machinery Co. and Urmi Patel plan to sell up to 4.09 million shares, or 28% stake, over two days at 3,500 rupees apiece. That’s 33% below Monday’s closing price. The offer includes an oversubscription option for 1.52 million shares, according to an after-hours filing.
Last month, the company said it will acquire 54% in parent Pfaudler Group from private equity investor Deutsche Beteiligungs AG for $27.4 million. Pfaudler will retain 20% and the Indian promoters, the Patel family, will buy 26% in the parent.
GMM’s shares have more than doubled this year even after Tuesday’s slump. Pfaudler Inc owns little over half the Indian company, while Millars Machinery holds a 11.1% stake. The free float -- or shares available for trading -- stands at about 22%, data compiled by Bloomberg show.
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