Chrys Capital buys 10% stake in GMM Pfaudler in bulk deals, stock recoups nearly all loss from 11% fall

As a result of Pfaudler's shareholding falling below 11 percent in the company, two of the company's non-executive directors - Malte Woweries and Harsh Gupta - have resigned.

GMM Pfaudler stated that Private Equity Fund DBAG Fund VI has sold 13.56 percent stake via block deals. Amongst buyers Geranium Investments Ltd., Atreides Investments B.V. and Infinity Partners, which are funds controlled by Chrys Capital, have picked up 9.90 stake or 44.5 Lakh shares.

GMM Pfaudler Ltd.'s shares slipped by over 11 percent in early trade on August 18, to hit a 52-week low at Rs 1,350 on the BSE following the report of a significant trade deal. However, the stock recouped the losses, and was quoting 0.47 percent lower at Rs 1,516 at close. On Wednesday, as well, the stock fell 11 percent in intra-day trade amid heavy volumes.

As a result of Pfaudler's shareholding falling below 10 percent in the company, two of the company's non-executive directors - Malte Woweries and Harsh Gupta have resigned.

Regarding the recent notable increase in the share volume of GMM Pfaudler, the company clarified that the fluctuations in both share volume and price are solely attributed to market conditions and market-driven factors. The company's management is in no way associated with any such changes in share volume and price.

Follow our live blog for all market action

GMM Pfaudler is a leading supplier of engineered equipment and systems to the chemical and pharma markets. The company employs over 1,500 people across its 14 manufacturing facilities in four continents.

Its branded product lines cover a broad portfolio that includes fluoropolymers, filtration & drying, engineered column systems, lab & process glass, sealing technology, and glass-lined & alloy systems.

Last Friday, GMM Pfaudler said that its consolidated revenue for the June quarter stood at Rs 912 crore, up 23 percent from Rs 739 crore it reported during the same period preceding fiscal, on the back of strong execution.
The company’s net profit remained largely flat compared to last year at Rs 54 crore from Rs 61 crore.

Operating profit, or EBITDA, jumped 35 percent year on year to Rs 132 crore during the quarter compared with Rs 98 crore a year ago. EBITDA margin also expanded 130 basis points to 14.5 percent. EBITDA refers to earnings before interest, tax, depreciation and amortisation.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.