Comments
The stock of Kennametal India plunged 6 per cent after the company informed that its promoter Kennametal Inc intends to cut its shareholding. The stock closed the day at Rs 690.45, down Rs 45.95, from the previous day's close.
Currently, promoters hold 88.16 per cent stake in the company, of which Kennametal Inc hold 37.16 per cent.
The company informed the exchanges that the promoter intends to reduce its holding "through one or more methods" permitted under Clause 40A of the equity listing agreement to comply with the terms of the Securities Contract (Regulations) Rules, 1957.
According to SEBI norms, companies should have minimum public shareholding of 75 per cent by June.
Earlier, there were expectations in market that the promoters might buy out the balance stake and might delist from the exchanges.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.