Timken India shares suffer 11% fall post Block Deal

Shares of Timken India suffered a steep fall of almost 11.1% to Rs 3,100.30 in early trading on Tuesday.

The shares of Timken India suffered a steep fall of almost 11.1% to Rs 3,100.30 in early trading on Tuesday. The shares suffered the fall after nearly 10% of the company’s equity exchanged hands in a large block deal.

84.5 lakh shares were part of the block deal which is said to be valued at Rs 2,629 crore.

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According to CNBC-TV 18, the likely seller in the deal is Timken India’s parent firm Timken Singapore Pte which decided to float 63 lakh shares or 8.3% of the total equity of its Indian subsidiary. The floor price was Rs 3,000 per share, which was a 14% discount from the stock’s closing price on Monday.

According to March 2023 shareholding pattern of Timken India, the majority stake is owned by its parent company Timken Singapore Pte at 67.8%.

Timken India which was previously a joint venture known as Tata Timken is one of the leading manufacturer of Tapered roller bearings, components and other accessories for Automobile and Railways.

The stocks of Timken India fell to a 28 month low which was last recorded in February 2021. As the block deal was taking place the volumes in stocks of Timken India are 135.5 times higher than its 3 month full day average.