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Business News/ Companies / News/  Timken Singapore looking to divest 6.6% stake in Timken India for 1,775 crore
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Timken Singapore looking to divest 6.6% stake in Timken India for ₹1,775 crore

The shares are being offered at a floor price of ₹3,550 per share, representing a discount of 10.2% compared to Timken India's closing price of ₹3,951.5 on the NSE on Monday.

The promoters are offering to sell up to 5 million shares, with a total deal value estimated to be around ₹1,775 crore ($213 million). (Photo: ISTOCK)Premium
The promoters are offering to sell up to 5 million shares, with a total deal value estimated to be around 1,775 crore ($213 million). (Photo: ISTOCK)

Promoter Timken Singapore Pte Ltd is looking to sell a 6.6% stake in Timken India Ltd for 1,775 crore, as per a term sheet obtained by Mint.

The promoters are offering to sell up to 5 million shares, with a total deal value estimated to be around 1,775 crore ($213 million). The shares are being offered at a floor price of 3,550 per share, representing a discount of 10.2% compared to Timken India's closing price of 3,951.5 on the NSE on Monday.

Spokespersons of Bank of America, which is managing the stake sale, did not respond to Mint's request for comment.

Currently, Timken Singapore holds a 57.7% stake in Timken India, which manufactures anti-friction bearings, primarily tapered roller bearings, and mechanical power transmission products for customers in diverse sectors.

Read | Promoters trim nearly $7 billion in share pledges riding buoyant equity markets

This is not the first time that Timken India's promoters are exploring a stake sale. On 20 June last year, Timken Singapore Pte Ltd sold 7.6 million shares at 3,107.75 apiece for 2,362 crore.

On 30 November, 2023, Profusion Investment Advisors offloaded 1.94 million shares of Timken India at 2,890.41 apiece for 561 crore.

Strong year for Timken India

Timken Singapore's move to reduce its stake comes in a year Timken India's stock price has surged, gaining 26% so far in 2024 and outperforming the benchmark Nifty50 index that has run up 24%.

There is a 180-day lock-in for the seller.

Timken India announced its Q4 results early this month, displaying a notable growth in both revenue and profit. The company's topline increased 11.86% year-on-year to 897.7 crore, while profit jumped 35.3% to 141.4 crore. Sequentially, Timken India's revenue soared 46.6% while profit surged 109.4%.

Operating income also showed a substantial increase, rising by 117.07% sequentially and 34.37% on a year-on-year basis.

The earnings per share for Q4 stood at 18.8, marking a 35.4% y-o-y increase.

Read | Trent, Bharat Electronics may get Nifty 50 entry: Nuvama

 

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ABOUT THE AUTHOR
Mayur Bhalerao
"Mayur spearheads data-driven reporting on IPOs for Mint. He also covers market trends, and corporate announcements to ensure comprehensive coverage of the financial landscape. Mayur believes in harnessing the power of Bloomberg Terminal and Capital Line to extract and disseminate critical financial data to cross-functional teams within the newsroom and beyond. disseminate critical financial data to cross-functional teams within the newsroom and beyond."
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Published: 27 May 2024, 07:47 PM IST
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