NewsOrders & DealsTimex Group India Shares Fall 8% as Promoter Announces Second OFS in Six MonthsTimex Group India Shares Fall 8% as Promoter Announces Second OFS in Six Months
Timex Group India's stock fell nearly 8% following the promoter's announcement to sell up to 8.93% stake through an OFS at ₹275 per share. This marks the second major divestment in six months, potentially reducing promoter shareholding to 51%. Despite the market reaction, the company has shown strong financial performance with significant revenue and profit growth in recent quarters.
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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:
| Parameter | Details |
|---|---|
| Base Offer Size | 4.47% (45.09 lakh equity shares) |
| Oversubscription Option | Additional 4.47% |
| Total Potential Sale | Up to 8.93% |
| Floor Price | ₹275 per share |
| Discount to Friday Close | Nearly 22% |
| Trading Dates | December 29-30 |
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:
| Financial Metrics | Q2 Performance | H1 Performance |
|---|---|---|
| Revenue Growth | 40% to ₹244.00 cr | 45% to ₹413.30 cr |
| PAT Growth | 70% to ₹30.20 cr | 2.3x to ₹45.00 cr |
| EBITDA Growth | 70% to ₹42.90 cr | 2.1x to ₹64.80 cr |
| EBITDA Margin | 17.00% | 15.70% (vs 10.60% YoY) |
| Royalty Income | ₹10.50 cr (vs ₹7.00 cr) | - |
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.
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