GMM Pfaudler tanks 18%, records worst fall in 5 years; here's why

New Delhi: Shares of GMM Pfaudler plunged more than 18% during the early trade on Friday, recording its biggest percentage fall in five years, amid reports that one of its promoters will sell a majority stake in the glass-lined equipment maker.

Pfaudler Inc, a promoter entity of GMM Pfaudler announced to sell 1.34 crore shares equivalent to 29.88% stake in the company which would fetch them Rs 2,278 crore via bulk deals on Friday, suggested media reports.

On BSE, about 17.6 lakh shares worth Rs 295.26 crore of the company were traded as of 10.15 am on Friday. About 1.09 crore shares worth over Rs 1,830 crore exchanged hands on National Stock Exchange (NSE) at the same time.

The heavy volumes suggest that the bulk deal was majorly executed but ETmarkets.com independently could not verify the same. Furthermore, the details of buyers could not be ascertained.

Following the heavy volumes, shares of GMM Pfaudler plunged more than 18% to Rs 1,575 on Friday, before recovering to Rs 1,640 at the same time. The scrip had settled at Rs 1,930.7 on Thursday.

On execution of the deal, the total promoter stake in the company will fall to 26.18% from 56.06%. Other promoter entities hold a 24.18% stake in the company. Axis Capital is the sole broker to the block trade, according to reports.

(With inputs from Reuters)