Kennametal India plunges as promoters decide to cut stake

MUMBAI: Shares of Kennametal India extended overnight losses and plunged over 11 per cent in trade today after the promoters announced plans to reduce their shareholding in the company to comply with SEBI’s minimum public shareholding norms.

“The company has received a letter from Kennametal Inc, the promoter shareholder of the company, whereby Kennametal Inc has informed the company that its promoters intend to reduce their shareholding in the company,” Kennametal India said in a regulatory filing.

Meanwhile, the company’s December quarter results were also a disappointment. Its net profit fell to Rs 6.68 crore for the quarter, down 60 per cent, compared to Rs 16.83 crore in the corresponding quarter a year ago. Total income slipped to Rs 131.91 crore in the December quarter from Rs 137.99 crore in the same period last fiscal.

The stock was at Rs 609, down 11.80 per cent, on the BSE. It touched a high of Rs 675.50 and a low of Rs 580.05 in trade today.