GMM Pfaudler Ltd slumped 18 percent in early trade on Friday after more than 11 million shares of the company changed hands in a block trade.
This comes after a Mint report said one of the company's promoters would sell majority stake in a block deal for ₹2,278 crore.
The stock was trading at ₹1,636, down 15 percent, at 9:45 am on the NSE. Friday's fall was the stock's worst fall in nearly 5 years.
According to the report, Pfaudler Inc was looking to sell a total of 1.34 crore shares, or 29.88 percent stake, at a floor price of ₹1,700 per share, a discount of 11.67 percent to Thursday's closing price.
As on September 30, Pfaudler Inc was holding 1.43 crore shares or 31.88 percent stake in the company that supplies engineered equipment and systems for critical applications in the chemical and pharmaceutical industries.
The stock price underperformed its sector by 23.69 percent in the past year.
"Traders should wait for it to cool down before taking a new step in this counter," said Rajesh Bhosale, equity technical and derivative analyst, Angel One.
The weekly delivery volume is 40.32 percent, and the stock has gained 31.86 percent from its 52-week low of ₹1,256.7.
As per trendlyne data, promoters increased holdings from 54.95 percent to 56.06 percent in the September quarter.
According to Mintgenie poll, four analysts on average recommend a 'buy' rating on the stock.
