Wendt GmbH Files Down Holdings-OFS Floor Price Sparks Investor Buzz

Image Source: wendtindia.com

Wendt (India) is in the limelight as its promoter, Wendt GmbH, plans to offload a large stake through an Offer for Sale (OFS), setting the floor price at ₹6,500 per equity share. The development indicates a possible change of guard in the company's ownership and can have significant implications for shareholders and the Indian precision tools industry.

Wendt (India), a prime super abrasives and precision engineering player, is seeing a landmark corporate event. Wendt GmbH, one of its key promoters, has floated a plan to sell a significant percentage of its holding via a secondary market OFS. The floor price of ₹6,500 per share is a salient point for market players, and the sale can be upsized if investor interest is good.

Offer for Sale Details

Wendt GmbH, the German promoter, is selling its holding in Wendt (India) through an OFS route.
The minimum price for the OFS has been fixed at ₹6,500 per share, serving as a benchmark for potential buyers.

Potential for Increased Sale

If the base offer is oversubscribed, Wendt GmbH can sell an additional 7.5% holding in the company.
This may lead to a substantial shift in the promoter holding and the overall shareholding pattern.

Background and Rationale

Wendt GmbH already has a large holding in Wendt (India) and is contemplating a wider exit from some business segments, such as machine building.
The company has also signed a trademark assignment agreement, assigning global rights to the "Wendt" brand to Wendt (India) for a maximum of €3.8 million (approx. ₹34 crore).

Market Impact and Share Price Movement

As of May 14, 2025, Wendt (India) shares were at ₹10,386, higher by 0.91% on the day, but have lost 31.77% in the past six months.
The OFS floor price is significantly lower than the prevailing market price, which may draw substantial investor attention.

Promoter and Shareholding Structure

Promoter holding as of March 31, 2025, was at 75%.
Any sizeable sale by Wendt GmbH will change the promoter shareholding and may enhance the free float of the stock.

Strategic Implications

The sale fits in with the strategy of Wendt GmbH to withdraw from selected non-core activities.
Wendt (India) will obtain full ownership of the "Wendt" brand, thereby strengthening its independence and brand equity in international markets.
Shares of Wendt (India) are currently quoted at ₹10,386, up 0.91% intraday.

The OFS announcement has created huge market buzz, with investors eagerly waiting for subscription information and updates.

Sources: Business Standard, BSE Corporate Filing, Economic Times Markets