Shares of ZF Commercial Vehicle Control Systems India Ltd witnessed pressure as reports emerged about a potential block deal by the company’s promoter, WABCO Asia. Sources indicate that WABCO Asia is set to offload a 3.5% equity stake in the company on Wednesday, November 27, at a floor price of ₹12,400 per share—a 14% discount to the previous closing price of ₹14,468.95.
As of 9:17 am the shares were trading 13.80% lower at ₹12,407.60 on NSE.
Key Highlights:
- Block Deal Details:
- WABCO Asia plans to raise approximately $98 million through the block deal.
- Citigroup Global Markets is serving as the sole book runner for the transaction.
- Promoter’s Holding:
- WABCO Asia held a 67.49% stake in ZF Commercial as of September 2024.
- Previous Stake Sale:
- In June 2024, WABCO Asia sold a 5% stake in the company for ₹1,423.1 crore at a floor price of ₹14,980 per share, representing a 13.3% discount to the prevailing market price.
- Post the June sale, WABCO Asia’s remaining stake was subject to a 120-day lock-up period, which has now expired.
This latest development comes amid market concerns over potential dilution and the steep discount in the offer price. Investors are closely monitoring the outcome of the block deal and its impact on the company’s share price and market dynamics.
