Shares of auto ancillary company Timken India suffered a steep fall on Tuesday after nearly 10 percent of the company’s equity changed hands in a large trade. Its share price reached an intraday low of ₹ 3,100.30 apiece on the Bombay Stock Exchange (BSE). At 03:18 PM, its shares were trading at ₹ 3249.00 apiece, down 6.79%, recovering from opening lows.
According to the data available, nearly 84.5 lakh shares changed hands in the transaction which was valued at ₹ 2,629 crores. The buyers and sellers of the deal were not known immediately.
Reports suggest that Timken Singapore Pte, had decided to sell 63 lakh shares or 8.3 percent of the total equity of the company through a block deal. The floor price of the transaction was set at ₹ 3,000 per share, which is at a discount of 14%, as compared to the company’s closing share price of ₹ 3485.50 apiece on Monday.
According to the latest shareholding pattern of the company, Timken Singapore Pte held a 67.8 percent stake in the company.
Timken India was previously known as Tata Timken, and it manufactures and distributes tapered roller bearings, components, and accessories for the automotive sector and the railway industry. Moreover, it provides maintenance contract services and refurbishment services.
With a market capitalization of ₹ 26,242 crores, Timken is a mid-cap stock. It has an ideal return on equity of 21.16% and is almost debt-free. The company’s shares were trading at a price-to-earnings ratio of 67.16, which is higher than the industry average of 28.07, indicating that the stock might be overvalued as compared to its competitors.
Written By Simran Bafna
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