At 52-week low! Wendt (India) plunges 20% as foreign promoter plans full exit via offer for sale

Mint

15-05-2025

Shares of Wendt (India) Ltd. tumbled over 17 percent on Thursday, May 15, following the announcement by its foreign promoter, Wendt GmbH, to offload its entire stake in the company via an Offer For Sale (OFS) process. The Germany-based firm, which jointly promotes the company along with India's Carborundum Universal, intends to sell up to 37.5 percent of the equity in Wendt (India), including an option to offload an additional 7.5 percent if oversubscribed.
The floor price for the OFS has been set at ₹ 6,500 per share — a steep 38 percent discount from the previous day's closing price. This triggered a sharp sell-off in the counter, dragging the stock down to a fresh 52-week low of ₹ 8,374.15, marking a fall of nearly 20 percent during intraday trade.
Wendt GmbH currently holds 37.5 percent in Wendt (India), equal to Carborundum Universal, a Murugappa Group entity, which also holds an identical stake. According to the filing, the OFS opened for non-retail investors on Thursday and will be accessible to retail investors on Friday, May 16.
In case of oversubscription, the promoters have retained the option to sell an additional 1,50,000 equity shares, which accounts for 7.5 percent of the company's total paid-up equity capital. This brings the total potential divestment to 37.5 percent of Wendt (India)'s equity.
"In the event that the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will collectively, hereinafter be referred to as 'offer shares' and while in the event that such oversubscription option is not exercised, the equity shares forming part of the base offer size will continued to be referred as offer shares," Wendt India said.
As per the March 2025 shareholding data, mutual funds held 6.62 percent in Wendt (India), largely led by SBI Contra Fund which owns a 6.37 percent stake. Meanwhile, 8,943 retail shareholders held a cumulative 16.14 percent in the company, each authorised for up to ₹ 2 lakh in capital.
The sharp drop on Thursday extended the bearish trend in Wendt (India), which has seen persistent selling pressure over the past few months. The stock has now fallen over 53 percent from its 52-week high of ₹ 18,000 touched on December 11, 2024.
In calendar 2025, the downtrend has accelerated. The stock lost 27.5 percent in January, 21 percent in February, and 7 percent in March, before a short-lived rebound of 11 percent in April. However, May has already erased most of those gains, with the stock losing nearly 20 percent in the first half of the month alone. Over the past one year, the stock is down around 24.5 percent.
Wendt (India) is a leading player in the super abrasives and precision grinding space. With a four-decade-long history, it offers high-end grinding solutions to several advanced manufacturing industries. The company also has a strong export footprint, serving clients in the US, UK, Germany, South Korea, Taiwan, and Australia.
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