Gland Pharma witnessed a 5% decline in its shares following reports indicating that two entities, Nicomac Machinery and RP Advisory Services, are planning to sell up to 4.4% stake in the company through block deals on Tuesday.
The entities aim to raise Rs 1,400 crore through the sale, with a floor price set at Rs 1,725 per share. This floor price represents a discount of over 7% to the current market price of the stock, which ended nearly 6% higher on the National Stock Exchange (NSE) on Monday at Rs 1,856.
Notably, the two entities involved in the stake sale are linked to Dr. Ravi Penmetsa, the former promoter of Gland Pharma. As of December, Nicomac Machinery held a 1.2% stake in the company, while RP Advisory Services held a 3.74% stake. Citibank is reported to be the advisor to the secondary stake sale.
Despite this stake sale, reports indicate that Penmetsa will retain around 1% stake in the firm. Investors will likely closely monitor developments in light of these significant ownership changes.
As of 12:15 pm the shares were trading 4.05% lower at ₹1,784.30
