Shares of Kennametal India Ltd crashed by Rs 54.40 to Rs 479.10 on the BSE today.
The stock crashed on the day of Offer For Sale (OFS) of 28,92,333 equity shares or 13.16 per cent of the equity capital by its promoters Kennametal Inc of the US.
The stock was, however, holding above the OFS price of Rs 435 set by the promoters who are diluting their holding in the company to meet the SEBI norms of minimum public shareholding of 25 per cent in listed companies.
The stock slipped to a fresh 52-week low of Rs 462.25 on the BSE this morning before pulling back a bit. The trading volume was about 1.07 lakh shares within the first hour of trading compared to the average volume of 6,900 shares.
Despite fixing the offer price at a sharp discount, the response to the offer is negligible so far till 12.25 p.m.
Bids were received for only 21,214 shares that translate to just 0.73 per cent of the issue size. Indicative price, which indicates most shares were tendered, is Rs 489.15.