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Promoters stake sale at a huge discount may sink GMM Pfaudler
Promoters Pfaudler Inc, Millars Machinery Co Pvt Ltd and Urmi Patel, will sell up to 17.59 per cent stake or 25.7 lakh crore shares in GMM Pfaudler Ltd through an offer-for-sale, the company said in a notice to the stock exchanges. The floor price has been set at Rs 3,500 a share, which is almost 33 per cent discount to Monday's closing price on the NSE.
The offer for sale will open for non-retail investors on Tuesday, and for retail investors on Wednesday, the company further said.
The promoters also retained the option of selling an additional 10.41 per cent stake or 15.21 lakh shares in case the oversubscription option is exercised. The three promoters currently own 65.84 per cent stake in the company. If it manages to sell all the stake, then the deal will be worth around Rs 1,400 crore.
Shares of the company may come under heavy pressure, as the share price is a deep discount to the current prevailing price.
Tuticorin Alkali promoters' sales in focus
Southern Petrochemical Industries Corporation Limited, Twinshield Consultants Private Limited and South India Travels Pvt Ltd, a part of the promoter group of Tuticorin Alkali Chemicals & Fertilisers Ltd, proposed to sell up to 2.23 crore shares, representing 18.34 per cent of the total paid-up share capital of the company through an offer-for-sale window on the stock exchanges. The sale will open on Tuesday for non-retail investors and on Wednesday for retail Investors.
The floor price has been fixed at Rs 6.75 as against Monday's closing price of Rs 7.96.
Angel Broking IPO to keep broking stocks in focus
The initial public offering of Angel Broking opens for subscription on Tuesday and will end on Thursday. The company plans to raise Rs 600 crore through the IPO with fresh issue of 98 lakh shares and an offer for sale of 98 lakh shares by promoters and existing shareholders.
The price band of the issue has been fixed as Rs 305-306 a share,
The funds will be used for working capital (for margin funding business) and other corporate purposes.
With the stock is valued at 30 PE multiples based on March 2020 earnings, investors will see a response to the issue. If the stock gets a huge response from investors, other listed stocks will also gain attention, as they will also catch up with the valuation.
The focus will be on listed stocks such as 5Paisa.com, IIFL Securities, Motilal Oswal Financial, ICICI Securities, Edel Financial and Geojit.
Meanwhile, Angel Broking has raised Rs 180 crore from anchor investors by allotting 58.82 lakh shares at Rs 306 a share.
Kwality to suffer on CBI charge sheet
Shares of Kwality will come under pressure, as the Central Bureau of Investigation on Monday filed a fraud case against Kwality Ltd for cheating a consortium of banks led by Bank of India.
The maker of dairy products is accused of Rs 1,400 crore fraud.
The CBI, which registered the case after a complaint from banks, named the company's directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava and other unknown people.
The banks said in their complaint that Kwality Ltd cheated them by ways of diversion of bank funds, sham transactions with related parties, fabricated documents/receipts, falsified books of accounts and creation of false assets and liabilities.
Other than Bank of India, the consortium includes Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank.
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