GMM Pfaudler shares hit 10% lower circuit post OFS announcement

In a press statement, the company said that promoters Pfaudler Inc. and Urmi Patel are selling 25.71 lakh shares or 17.59% of the total equity with an option to additionally sell 15.22 lakh shares (10.41%).

“Pfaulder Inc., Millars Machinery Company Pvt. Ltd and Urmi Patel, being part of the promoter group, propose to sell up to an aggregate of 25,71,429 equity shares held by the sellers in GMM Pfaudler Ltd representing approximately 17.59% of the total issued and paid-up equity share capital of the company on September 22, 2020 for non-retail investors only and on September 23, 2020 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids with an additional option to additionally sell up to 15,21,671 equity shares representing approximately 10.41% of total paid up equity share capital of the company," the company said in a statement to exchanges.

GMM Pfaudler Ltd is supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical markets. In a note by Anand Rathi Research in January, it had said that being the leader, with a commanding 60% market share, GMM Pfaudler will be a major beneficiary as vast prospects in agro and specialty chemicals are opening up. “Its diversification into heavy engineering and drying and mixing would add to its revenue. Its strong fundamentals are substantiated by its record of positive operating cash-flows, even in economic crises," it said.