GMM Pfaudler exercises Greenshoe Option for OFS

The offer for sale (OFS) of GMM Pfaudler was oversubscribed by non-retail investors on Tuesday, following which the promoter has decided to exercise the oversubscription option. The company after market hours on Tuesday announced that it will be exercising the oversubscription option for the ongoing OFS issue to the extent of 4,28,571 equity shares (approximately 2.93%) of the company in addition to the base issue of 25,71,429 equity shares (approximately 17.59%).

Accordingly, the final share sale via OFS will be 30 lakh shares (about 20.52% of the paid-up equity share capital of the company). The promoters held 1.09 crore shares or a 75% stake in the company as on 30 June 2020. The floor price for the OFS was set at Rs 3500 apiece, at a 33.22% discount to GMM's closing price of Rs 5241.10 on Monday.

The OFS opened on Tuesday (22 September 2020) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe today (23 September 2020).

The non-retail segment on 22 September received total bids of 27,58,133 shares or 119.18% against the base non-retail offer size. Subsequently, the company opted for the greenshoe option.

As on 10:45 IST today, the OFS received a subscription for 34,737 shares or 13.51% against the base retail offer size of 2.57 lakh shares.

Shares of GMM Pfaudler were locked in a lower circuit of 10% at Rs 4245.30. The stock hit the lower circuit for the second consecutive day after the OFS floor price was set at a steep discount.

About GMM Pfaudler

GMM Pfaudler is a supplier of process equipment for the pharmaceutical and chemical industries. The company has a diversified product portfolio which includes mixing systems, filtration & drying equipment, engineered systems, and heavy engineering equipment. The company reported an 8.5% rise in consolidated net profit to Rs 19.19 crore on a 2.8% increase in net sales to Rs 154.43 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin fell to 17.8% as of 30 June 2020 from 18.4% as of 30 June 2019.