Kennametal India promoters to dilute 13.16% stake through OFS

NEW DELHI: The US-based Kennametal Inc will sell nearly 29 lakh shares, or 13.16 per cent, in its Indian subsidiary Kennametal India through an offer for sale on March 14 which could fetch the company a little over Rs 166 crore.

Kennametal Inc in a BSE filing said it would sale "28,92,333 shares of the company of the face value of Rs 10 each, aggregating approx. 13.16 per cent of the total paid up equity share capital of the company."

Kennametal India's shares today settled at Rs 575 apiece, up 0.59 per cent over the previous closing in BSE. At current price, the stake sale would fetch Rs 166.30 crore.

The promoters of the company hold 88.16 per cent stake in Kennametal India. The stake sale could be intended at lowering stake to meet the minimum public float norms stipulated by the market regulator, SEBI.

The shares would be sold through the offer for sale route in a separate window in BSE on March 14. The company would announce the floor price after the tarding hours tomorrow, it said.

Kennametal India manufactures hard metal products and machine tools for use in the manufacturing, auto, and general engineering industries.