Timken Singapore Pte Ltd, the main promoter of Timken India Ltd, is planning to sell a 6.6% stake in the company for ₹1,775 crore. According to a term sheet seen by Mint, the promoters will sell up to 5 million shares at a floor price of ₹3,550 each. This price is 10.2% lower than Timken India’s closing price of ₹3,951.5 on the NSE from Monday.
Bank of America, which is managing the sale, did not provide a comment.
Currently, Timken Singapore owns 57.7% of Timken India, which makes anti-friction bearings and mechanical power transmission products for various industries.
This isn’t the first time the promoters are selling shares. On June 20 last year, Timken Singapore sold 7.6 million shares at ₹3,107.75 each, totaling ₹2,362 crore. Also, on November 30, 2023, Profusion Investment Advisors sold 1.94 million shares at ₹2,890.41 each, making ₹561 crore.
Strong Year for Timken India
Despite the planned sale, Timken India’s stock has had a strong year, rising 26% in 2024 and outperforming the Nifty50 index’s 24% gain.
There is a 180-day lock-in period for the seller.
Earlier this month, Timken India reported impressive Q4 results, with revenue growing 11.86% year-on-year to ₹897.7 crore and profit jumping 35.3% to ₹141.4 crore. Compared to the previous quarter, revenue increased 46.6% and profit soared 109.4%.
Operating income also saw significant growth, rising 117.07% from the previous quarter and 34.37% year-on-year.
The Q4 earnings per share stood at ₹18.8, up 35.4% from the same period last year.
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