Of the 13.6% stake, 9.9% equity was purchased by funds affiliated with ChrysCapital while the remaining 3.7% equity was bought by other investors. Following the deals, the stock hit a 52-week low of Rs 1,350 — falling by over 11%. Later in the day, the stock recovered most of the losses.
Pfaudler’s stake in the company was held through DBAG Fund VI, a private equity fund advised by Deutsche Beteiligungs AG (DBAG). Following the stake sale, DBAG’s nominee directors Malte Woweries and Harsh Gupta tendered their resignations.
The Patel family continues to remain the largest shareholder of the company and reiterated its commitment to purchase the remaining 1% equity stake from DBAG at Rs 1,700 per share as agreed in December 2022 — subject to regulatory approvals.
“I want to express my gratitude to DBAG for their support and guidance over the years. The end of one journey also marks the beginning of another exciting journey for GMM Pfaudler. The investment by a marquee investor like ChrysCapital represents a powerful endorsement of GMM Pfaudler’s track record and our commitment to building a world class institution,” said Tarak Patel, Managing Director of GMM Pfaudler.
Pfaudler Inc, which owned 31.88% stake at the end of September 2022, had sold a part of its stake in the company last year as well.
Through various promoter group entities, the Patels own 24.18% stake in the company at the end of the June quarter.
Up 4 times in the last 5 years, the stock has underperformed with a negative return of around 5% in the last one year.