Shares of GMM Pfaudler fell 18% to Rs 1,576.10 on the National Stock Exchange (NSE) and Rs 1,575 on the BSE after more than 11 million shares of the company changed hands in block deals.

A total of about 11.18 million shares changed hands on the NSE and BSE as of 9:30 am, accounting for nearly 25% of the company’s total share capital, exchange data showed. The names of the buyer and seller could not be immediately identified. In contrast, the Nifty50 and the S&P BSE Sensex were down 0.2% at 9:50 am.

GMM Pfaudler’s promoter, Pfaudler Inc, is looking to sell its majority stake in the company in a blockbuster deal that could bring shareholders Rs 2,278 crore, according to media reports.

“Pfaudler Inc will sell 13.4 million shares in the company, representing a 29.88% stake, at a floor price of Rs 1,700 each, representing a discount of 11.67% to the company’s closing price on Thursday,” Mint reported.

The shareholding structure data shows that as of September 30, 2022, Pfaudler Inc holds 14.33 million shares of GMM Pfaudler, with a shareholding ratio of 31.88%.

GMM Pfaudler provides anti-corrosion technology, systems and services worldwide and remains the first choice by consistently delivering innovative and cost-effective solutions to customers in the chemical and pharmaceutical industries.

When the entire sale is complete, the promoters’ total stake will drop to 26.18% from 56.06% at the end of September. Under the terms of the deal, Axis Capital is the sole broker for block trades.

GMM Pfaudler is a leading supplier of engineered equipment and systems for the chemical and pharmaceutical markets. Its product lines span a broad product portfolio, including fluoropolymers, filtration and drying, engineered column systems, laboratory and process glass, sealing technologies and alloy systems.

In the second quarter of fiscal 2023, the company reported a 23% year-on-year increase in operating revenue to Rs 780 crore. Net profit jumped more than 50% to Rs 96 crore in the same period. The total order backlog stands at Rs 2,119 crore.