GMM Pfaudler’s promoters put their interests first

Twice in 26 months, the Gujarat-based company’s promoters announce decisions that give ordinary investors short shrift.

On 16 December, shares of Gujarat-based industrial equipment maker GMM Pfaudler—trading post the 2:1 bonus issue announced in July this year—fell over 14% to close at Rs 1,644. The sharp drop was a reaction to news of one of the promoters divesting their stake in the company.

A similar episode happened a little over two years ago. In September 2020, in the course of two weeks, the stock slid from Rs 5,926 to Rs 3,613—a 40% drop. Then, the promoters had come out with an offer for sale of shares. 

Spread 26 months apart, the two episodes are no coincidence: …


T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor