Kennametal India has tanked over 12% to Rs 605, extending its previous day’s 6% fall after its US-based parent-promoter announced plans to cut stake in the company from the current 88.61% to comply with the SEBI norms on minimum public share holding requirements
The stock opened at Rs 675 and hit a low of Rs 580, its lowest level since May 2011 on BSE. As many as 37,422 shares have already changed hand son the counter so far against an average around 3,500 shares that were traded daily in past two weeks.
“The company has received a letter from Kennametal Inc., the promoter shareholder of the Company whereby Kennametal Inc. has informed the company that its promoters intend to reduce their shareholding in the Company,” Kennametal India said in a regulatory filing.
According to SEBI guidelines, the public shareholding in a company should be a minimum of 25% by June.
Meanwhile, the company has reported 60% year-on-year drop in its net profit at Rs 6.68 crore for the quarter ended December 2012 against Rs 16.83 crore in the corresponding quarter of previous year.