ZF Commercial shares fall 13.5% after major block deal worth Rs 1,387 crore; promoters likely sellers

The block deal in ZF Commercial Vehicle marks another possible divestment by the company’s promoters.

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Shares of ZF Commercial Vehicle Control Systems India Ltd plunged 13.5 percent on Wednesday to Rs 12,450 in the morning trade, following a large block deal in which the promoter entity is said to have offloaded partial equity stake.

As many as 11 lakh shares, representing a 5.7 percent equity stake in ZF Commercial, changed hands at an average price of Rs 12,679 per share, amounting to a total transaction value of Rs 1,387 crore, reported CNBC TV18.

Earlier, CNBC TV18 reported citing sources that the company's promoter, WABCO Asia, was selling a 3.5 percent equity stake at a floor price of Rs 12,400 per share, which represented a 14 percent discount to Tuesday's closing price of Rs 14,468.95. As of September 2024, WABCO Asia held a 67.49 percent stake in ZF Commercial.

This block deal possibly marks another significant divestment by the company’s promoters, following the sale of a 7.5 percent stake in June. German auto component supplier ZF Group, which owns the subsidiary, had said at the time that the June sale was aimed at increasing liquidity and financial flexibility for growth.

ZF Commercial share price is now down 20 percent in the last one year, including today’s steep fall. The company’s market capitalisation is under Rs 24,000 crore.