Timken India’s promoters to sell 6.6% stake through block deals, today

28 May 2024 , 10:45 AM

Timken India’s foreign promoters are expected to sell 6.6% of their holdings in the firm in block deals on Tuesday, according to a term sheet released by BofA Securities India.

According to the term sheet, the floor price has been fixed at ₹3,550 per share, representing a 10.2% discount from Monday’s closing price of ₹3,956. The sale at the floor price may net Timken’s parent firm approximately ₹1,775 Crore, or $213 million.

Timken Singapore sold around 10.1% of its Indian listed arm, or 76 lakh shares, in an open market transaction in June of last year for ₹2,362 Crore. As of March 31, 2023, Timken Singapore held a 67.8% ownership in the company, which was later decreased to 57.70%.

Timken then stated that the net proceeds from the transaction would be used to support its 2023 capital allocation targets, with an emphasis on share repurchases. The company previously announced plans to open a new manufacturing facility in Gujarat to produce Spherical Roller Bearings (SRB), Cylindrical Roller Bearings (CRB), and components.

Timken India manufactures and distributes anti-friction bearings and mechanical power transmission products for a variety of industries. Timken was founded in 1987 as a joint venture between Tata Iron and Steel (TISCO) and The Timken Company; however, Timken later bought Tata Steel’s 40% ownership and renamed the company.

At around 10.41 AM, Timken India was trading 5.73% higher at ₹4,177.95 per share against the previous close of ₹3,951.50 on NSE. The counter touched an intraday high and low of ₹4,258.70, and ₹4,095, respectively.

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