Timken Singapore looking to divest 6.6% stake in Timken India for ₹1,775 crore

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₹1,775 crore, as per a term sheet obtained by Mint.The promoters are offering to sell up to 5 million shares, with a total deal value estimated to be around ₹1,775 crore ($213 million). The shares are being offered at a floor price of ₹3,550 per share, representing a discount of 10.2% compared to Timken India's closing price of ₹3,951.5 on the NSE on Monday.Spokespersons of Bank of America, which is managing the stake sale, did not respond to Mint's request for comment.Currently, Timken Singapore holds a 57.7% stake in Timken India, which manufactures anti-friction bearings, primarily tapered roller bearings, and mechanical power transmission products for customers in diverse sectors.This is not the first time that Timken India's promoters are exploring a stake sale.

On 20 June last year, Timken Singapore Pte Ltd sold 7.6 million shares at ₹3,107.75 apiece for ₹2,362 crore.On 30 November, 2023, Profusion Investment Advisors offloaded 1.94 million shares of Timken India at ₹2,890.41 apiece for ₹561 crore.Timken Singapore's move to reduce its stake comes in a year Timken India's stock price has surged, gaining 26% so far in 2024 and outperforming the benchmark Nifty50 index that has run up 24%.There is a 180-day lock-in for the seller.Timken India announced its Q4 results early this month, displaying a notable growth in both revenue and profit. The company's topline increased 11.86% year-on-year to ₹897.7 crore, while profit jumped 35.3% to ₹141.4 crore.