A block deal involving 50 lakh shares, translating to a 6.65 percent stake in Timken India changed hands in a block deal on May 28.
Moneycontrol could not immediately ascertain the parties involved in the transaction. However, CNBC-TV18 reported on May 27, citing sources, that the company's parent entity Timken Singapore was aiming to unload a 6.6 percent stake in the company in hopes to earn Rs 1,775 crore from the deal.
Shares of Timken India surged around 8 percent after the deal, hitting an intraday high of Rs 4,258.70 on the NSE.
The block deal also fueled a surge in volumes in the counter as 55 lakh shares changed hands on the exchanges, sharply higher than the one-month average of 2 lakh shares.
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As per the report, the deal, brokered by BoFA Securities was likely to be executed at a sharp discount to Timken India's previous closing price. Along with that, the report also stated that the stake sale will trigger a 180-day lock-in for the promoter entity before it can execute another tranche of stake sale.
According to the company's latest shareholding data at the end of the March quarter, the promoter, Timken Singapore owned a 57.70 percent stake in Timken India.
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