Timken India witnessed a significant uptick in its stock value as 5 million shares were traded in a block deal, causing the shares to jump to Rs 4,250 on the stock exchange. The names of the buyers and sellers involved in this deal remain undisclosed at the moment, creating anticipation in the market regarding the implications of this substantial transaction.
Reports indicate that Timken India's promoter, Timken Singapore, intended to sell off a 6.6% stake, equivalent to 5 million shares in the company, through block deals on May 28 at a floor price of Rs 3,550 per share, representing a 10.2% discount from the previous day's closing price. This move has the potential to generate approximately Rs 1,775 crore for the promoters. As of March 31, 2024, the promoter had a 57.7% stake in Timken India, as per shareholding pattern data available in the public domain.
Timken India, known for its operations in anti-friction bearings, mechanical power transmission products, and related services, has been a notable performer in the market, having seen a record high share price of Rs 4,350 on May 24, 2024. The company has shown a commendable performance, surpassing the market performance by 30% in the last three months and 43% in the past six months, unlike the benchmark index's 1% and 14% rises, respectively.
The company is currently looking to enhance its manufacturing capacity at its Bharuch facility, where they plan to invest around Rs 600 crore towards adding Spherical Roller Bearings (SRBs) and Cylindrical Roller Bearings (CRBs). Timken India forecasted that the commercial operations at this expanded facility would commence in January 2025, underlining their commitment to localized manufacturing and product diversification.