Timken India’s foreign promoters eye 6.6% stake sale via block deals

Foreign promoters of Timken India are likely to sell 6.6% of stakes in the company through block deals on Tuesday, according to a term sheet issued by BofA Securities India. The term sheet indicates that the floor price has been set at Rs 3,550 per share, which is a 10.2% discount to Monday’s closing price of Rs 3,956. The sale at the floor price could fetch Timken’s parent company around Rs 1,775 crore or $213 million.

The stock has rallied 47% in the last three months, compared to a 3.14% gain in the Sensex.

In June last year, Timken Singapore sold about a 10.1% stake, or 76 lakh shares, in its Indian listed arm for Rs 2,362 crore through an open market transaction. As of March 31, 2023, Timken Singapore owned a 67.8% stake in the company, which was subsequently reduced to 57.70%.

Timken then said the net proceeds from the sale were to be utilised to support its 2023 capital allocation priorities, with a specific focus on share repurchases. The company had earlier announced plans to set up a new manufacturing facility in Gujarat to produce Spherical Roller Bearings (SRB), Cylindrical Roller Bearings (CRB), and components.