Despite a positive start in the first trading session of the week, the Sensex and Nifty50 graphs turned red as the day progressed. However, shares of Timex Group India Limited have been falling since the market opened on Monday. The company's share price dropped by nearly 10 per cent to ₹316.60. Why did this company's shares fall so deeply?
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The promoter company of Timex Group will offload market shares through an offer-for-sale. This process began on Monday itself. Its promoter company, Timex Group Luxury Watches BV, will offload 45 lakh 9 thousand 250 shares. This represents approximately 4.47 per cent of the company's total paid-up shares. The face value of each share being offloaded by the promoter is ₹1.
However, these shares are being offloaded at a 22 per cent discount price from the last closing. The price per share for this offer-for-sale is ₹275. This comes as a major shock to current investors. This offer-for-sale has been considered one of the major reasons for the fall in Timex Group's share price.
Timex Group India's offer-for-sale will run on December 29 and 30, i.e., Monday and Tuesday. On Monday, non-retail investors can apply to buy these shares. On Tuesday, retail investors can purchase shares of this company.
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Over the past month, this company's share price has declined by more than 3 per cent. However, over the past 6 months, this stock's price has increased by 47 per cent. Compared to the past year, this stock has grown by 63 per cent. Over the past five years, this stock has given multibagger returns. The price has increased by 1 thousand 88 per cent.
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