GMM Pfaudler advanced 3.28% to Rs 3,947, extending gains for the second straight session.
Shares of GMM Pfaudler jumped 8.43% in two consecutive trading sessions from its recent closing low of Rs 3,639.85 on Monday, 28 September 2020.
The stock crashed 38.45% in nine straight sessions to Rs 3,639.85 on 28 September 2020, from a closing high of Rs 5,913.90 on 15 September 2020. The selloff was triggered after the company's promoters announced an offer for sale of equity shares at huge discount.
GMM Pfaudler's promoters on 21 September 2020 offering to sell over 25.71 lakh equity shares, constituting approximately 17.59% paid-up share capital of the company, through offer for sale (OFS) route. The floor price for the OFS was set at Rs 3,500 each, a 33.22% discount to GMM's closing price of Rs 5,241.10 on 21 September 2020. The OFS was open on 22nd and 23rd September 2020.
The company's managing director Tarak Patel told investors in a conference call that GMM's OFS attracted strong institutional interest. "We have a very-very strong shareholders roster. We have about 3 or 4 top money managers from the US, we have a very strong institutional investor base here from India which includes the top 3 to 5 mutual funds as well and these people will not come in unless they have done all the diligence," Patel told investors on Friday (25 September).
Patel said that the private equity fund Deutsche Beteiligungs AG (DBAG) is going to continue holding 32.68% where previous holding was 50.44%. Patel family was holding 24.56%. They sold 2.29% and now the stake has come down to 22.27%. Promoter holding has come down from 75% to 54.95% and public float has gone up from 25% to 45.05%.
The company reported 8.5% rise in consolidated net profit to Rs 19.19 crore on 2.8% increase in net sales to Rs 154.43 crore in Q1 June 2020 over Q1 June 2019.
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GMM Pfaudler is a supplier of process equipment to the pharmaceutical and chemical industries. The company has a diversified product portfolio which includes mixing systems, filtration & drying equipment, engineered systems and heavy engineering equipment.
Currently, the stock is trading 42.91% below its 52-week high of Rs 6,913.85 hit on 12 August 2020. The scrip galloped 190.75% from its 52-week low of Rs 1,357.50 hit on 1 November 2019.
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