Tamrock Great Britain Holdings has significantly increased its offer for sale in Eimco Elecon (India) Limited, exercising its oversubscription option to expand the total offer size to 14,23,875 shares. This move represents a substantial 24.68% of Eimco Elecon's total issued and paid-up equity share capital.

Offer Details

The offer, which was initially set at a base size of 7,23,875 shares (approximately 12.55% of the company's equity), has now been expanded by an additional 7,00,000 shares. This expansion comes through the exercise of an oversubscription option, effectively doubling the size of the original offer.

Timeline and Process

According to the LODR data, the offer is scheduled to take place over two days:

• September 24, 2025 (T day): Open for non-Retail Investors only
• September 25, 2025 (T+1 day): Open for Retail Investors and non-Retail Investors with unallotted bids from T day

Retail Investor Allocation

As part of this expanded offer, 1,42,388 shares have been reserved for allocation to Retail Investors, subject to the receipt of valid bids.

Market Impact

This significant increase in the offer size could potentially impact Eimco Elecon's stock price and liquidity in the short term. The move by Tamrock Great Britain Holdings, a promoter group entity of Eimco Elecon, to offload a quarter of the company's equity may also lead to changes in the company's shareholding pattern.

Company Background

Eimco Elecon (India) Limited operates in the industrial machinery sector. The company's shares are traded under the ISIN INE158B01016.

This development represents a significant shift in Eimco Elecon's ownership structure and may attract attention from both institutional and retail investors looking to acquire a substantial stake in the company.

Shares of Eimco Elecon (India) Ltd. experienced a sharp decline of 15.00% in Wednesday's trading session following a significant announcement by the company's promoter group. Tamrock Great Britain Holdings Limited, a key shareholder holding a 24.68% stake in the company, has revealed plans for a substantial stake sale through an Offer for Sale (OFS) mechanism.

Offer Details

Tamrock Great Britain Holdings Limited intends to sell up to 7,23,875 equity shares, representing approximately 12.55% of the total issued and paid-up equity share capital of Eimco Elecon. The base offer size accounts for about 12.55% of Tamrock's current holding in the company.

Oversubscription Option

In addition to the base offer, Tamrock has included an oversubscription option for up to 7,00,000 additional shares, equivalent to approximately 12.14% of the company's total issued and paid-up equity share capital. If the oversubscription option is fully exercised, the total stake sale could amount to 14,23,875 shares, representing Tamrock's entire 24.68% holding in Eimco Elecon.

Offer Schedule

The OFS is scheduled to take place over two trading days:

• September 24, 2025 (T Day): Open for non-retail investors only
• September 25, 2025 (T+1 Day): Open for retail investors and non-retail investors who choose to carry forward their unallotted bids from T Day

Floor Price and Market Reaction

The floor price for the offer has been set at ₹1,400.00 per share, representing a significant discount of 31.00% compared to the previous day's closing price. This steep discount likely contributed to the 15.00% drop in Eimco Elecon's share price during Wednesday's trading session.

Retail Investor Participation

The OFS includes a provision for retail investors, with 10% of the offer shares reserved for this category. Retail investors, defined as individual investors placing bids for shares valued at not more than ₹200,000.00, will be allowed to participate on T+1 Day.

Implications

This substantial stake sale by a promoter group entity could potentially lead to a significant change in the ownership structure of Eimco Elecon (India) Ltd. The market's initial reaction, as evidenced by the sharp decline in share price, suggests that investors are reassessing the company's valuation in light of this development.

About Eimco Elecon (India) Ltd.

Eimco Elecon (India) Ltd., established in 1974, is a leading manufacturer of underground mining machinery. The company produces a wide range of equipment including load haul dumpers, side discharge loaders, and other mining and tunneling machinery.