Wendt India OFS: Stock plunges 20% as offer for sale kicks off for non-retail investors

Wendt India Ltd on Thursday plunged 20 per cent on Thursday, as the two-day offer for sale (OFS) by the German parent for 37.5 per cent stake kicked off. The OFS came at a time when the Wendt India stock has already dived 37 per cent year-to-date. Add to that the floor price set at Rs 6,500 apiece was at 37.90 per cent lower than Wednesday's closing price and 64 per cent lower than Wendt India's 52-week high of Rs 18,000 apiece hit on December 11, 2024.    

On Thursday, the Wendt India stock fell 20 per cent to hit a low of Rs 8,374.15 on BSE. In a filing to BSE, Wendt India said its German promoter has proposed to offload up to 6,00,000 shares of the company, representing 30 per cent of the total issued and paid-up equity share capital on May 15 and May 16.

The promoter would keep an option to additionally sell 1,50,000 equity shares, representing 7.50 per cent of the total issued and paid-up equity share capital of the company in the event of an oversubscription option. It is, thus, collectively looking to sell a 37.50 per cent stake.

"In the event that the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will collectively, hereinafter, be referred to as 'offer shares', and in the event that such oversubscription option is not exercised, the equity shares forming part of the base offer size will continue to be referred to as offer shares," Wendt India said.

The promoter held a 75 per cent stake in the company as of the last count.

Only non-retail investors would be allowed to place their bids on T day, i.e., May 15. While placing their bids, non-retail investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of the retail category.

For retail investors, and for non-retail investors who choose to carry forward their un-allotted bids to T+1 day, the bidding will be open on May 16.

The offer would take place during trading hours on a separate window of the stock exchanges, commencing at 9:15 am and closing at 3:30 pm Indian Standard Time on the same date.