Timex Group India has announced that its promoter, Timex Group Luxury Watches BV, Netherlands, has exercised the oversubscription option in full for its ongoing offer for sale (OFS). The decision doubles the total offering size to 90.19 lakh equity shares, representing 8.93% of the company's total issued and paid-up equity share capital.

OFS Structure and Timeline

The OFS was conducted on December 29 for non-retail investors and December 30 for retail investors and non-retail investors carrying forward unallotted bids. Under the original structure, the promoter had proposed to sell up to 45.09 lakh equity shares, representing 4.47% of the total issued and paid-up equity share capital as the base offer size.

Oversubscription Option Exercise

The promoter had retained the option to sell an additional 45.09 lakh equity shares under the oversubscription mechanism. By exercising this option in full, Timex Group Luxury Watches BV has effectively doubled the stake divestment from the originally planned 4.47% to 8.93% of the company's equity capital.

Company Profile and Operations

Timex Group India designs, manufactures, and markets innovative timepieces as part of the global Timex Group, a privately-held company headquartered in Middlebury, Connecticut, with over 2,000 employees worldwide. Beyond the flagship Timex brand, the company manages an extensive portfolio of licensed brands including Versace, Guess, Gc, Philipp Plein, Plein Sport, Ferragamo, Nautica, Ted Baker, adidas, and UCB watches.

Stock Performance

Shares of Timex Group India closed at ₹329.50 on December 29, declining by ₹22.25 or 6.33% on the BSE. The stock movement reflects market response to the increased OFS size and the promoter's decision to divest a larger stake through the offering mechanism.

Shares of Timex Group India Ltd declined nearly 8% on Monday following the promoter's announcement of a significant stake sale through an offer for sale (OFS). Timex Group Luxury Watches BV, the promoter, plans to divest up to 8.93% of its holding at a floor price of ₹275 per share, marking the second major divestment in six months.

Market Reaction and Current Performance

The stock closed 7.90% lower at ₹324.05 on Monday, reflecting investor concerns over the substantial stake sale. Despite the decline, Timex Group India shares have delivered strong returns, gaining 82% and up 63% since the completion of the first promoter OFS in July. The floor price represents a discount of nearly 22% compared to Friday's closing price.

OFS Structure and Timeline

The offer for sale follows a structured approach with specific parameters for different investor categories:

Promoter Shareholding Changes

The current OFS represents the second major divestment by Timex Group Luxury Watches BV in recent months. At the end of the previous financial year, the promoter held a 74.93% stake in the company. Following a 15% stake sale in June at ₹175 per share floor price, the promoter shareholding reduced to 59.93%. Upon completion of the current OFS, the promoter shareholding is expected to decline further to 51%.

Recent Financial Performance

Despite the market reaction to the OFS announcement, Timex Group India has demonstrated robust financial performance in recent quarters:

Transaction Infrastructure

The OFS will be conducted through a separate designated window of the Bombay Stock Exchange (BSE) in accordance with regulatory requirements. Kotak Securities continues to serve as the seller's broker for the transaction, providing institutional support for the divestment process. The structured timeline ensures orderly participation across different investor segments while maintaining compliance with SEBI regulations.