Timex Group India shares sink 5% as promoter to sell 15% stake via OFS route

Shares of Timex Group India experienced a notable decline of 5% after the announcement that Timex Group Luxury Watches BV, the promoter, plans to divest a 15% stake through the Offer for Sale (OFS) route. This strategic move comes as the company aims to optimize its shareholding structure and enhance market liquidity. Investors reacted swiftly to the news, leading to a dip in the stock's value during the trading session. As of the March quarter, Timex Group Luxury Watches BV held a significant 74.93% stake in Timex Group India. The planned sale via the OFS route is expected to reduce this majority stake, aligning with regulatory norms that encourage promoter stake dilution. The OFS mechanism allows existing shareholders to sell their shares in a transparent manner, providing an opportunity for broader market participation. Market analysts suggest that while the immediate impact on share price is negative, the move could be beneficial in the long run by increasing the stock's free float and attracting a more diverse investor base. The success of the OFS will depend on market conditions and investor appetite, as stakeholders closely monitor the unfolding developments.

— Authored by Next24 Live