Promoter Timken Singapore Pte Ltd is looking to sell a 6.6% stake in Timken India Ltd for ₹1,775 crore, as per a term sheet obtained by Mint.
The promoters are offering to sell up to 5 million shares, with a total deal value estimated to be around ₹1,775 crore ($213 million). The shares are being offered at a floor price of ₹3,550 per share, representing a discount of 10.2% compared to Timken India’s closing price of ₹3,951.5 on the NSE on Monday.
Spokespersons of Bank of America, which is managing the stake sale, did not respond to Mint’s request for comment.
Currently, Timken Singapore holds a 57.7% stake in Timken India, which manufactures anti-friction bearings, primarily tapered roller bearings, and mechanical power transmission products for customers in diverse sectors.
This is not the first time that Timken India’s promoters are exploring a stake sale. On 20 June last year, Timken Singapore Pte Ltd sold 7.6 million shares at ₹3,107.75 apiece for ₹2,362 crore.
On 30 November, 2023, Profusion Investment Advisors offloaded 1.94 million shares of Timken India at ₹2,890.41 apiece for ₹561 crore.
Strong year for Timken India
Timken Singapore’s move to reduce its stake comes in a year Timken India’s stock price has surged, gaining 26% so far in 2024 and outperforming the benchmark Nifty50 index that has run up 24%.
There is a 180-day lock-in for the seller.
Timken India announced its Q4 results early this month, displaying a notable growth in both revenue and profit. The company’s topline increased 11.86% year-on-year to ₹897.7 crore, while profit jumped 35.3% to ₹141.4 crore. Sequentially, Timken India’s revenue soared 46.6% while profit surged 109.4%.
Operating income also showed a substantial increase, rising by 117.07% sequentially and 34.37% on a year-on-year basis.
The earnings per share for Q4 stood at ₹18.8, marking a 35.4% y-o-y increase.
