Cimmco fell 8.5% today morning to Rs.39, which is not too far away from its 52-week low of Rs.36.55. Volumes on the counter are up 2.5 times.
The market is obviously not happy with the company’s open offer. Titagarh Wagons, a part of the promoter group of Cimmco, being the selling promoter member. It has offered to sell 15,43,090 shares of face value of Rs. 10/- each representing 5.64% of the share capital.
The floor price set is at Rs.38/share and the disappointment is over this – the price is at a discount to yesterday’s closing price of Rs.42.60.