Wendt (India) Shares Plunge Over 17% Following Promoter's Exit Plans via OFS

On Thursday, May 15, 2025, Wendt (India) shares tumbled more than 17% after foreign promoter WENDT GmbH announced its decision to divest its entire stake in the company through an Offer for Sale (OFS). Wendt (India) is a leading manufacturer serving the diamond processing industry.

Wendt (India) is co-promoted by WENDT GmbH and Carborundum Universal, each holding a 37.5% stake in the company.

WENDT GmbH OFS

WENDT GmbH OFS opened today for non-retail investors and will be available to retail investors on Friday, May 16. The floor price for the OFS has been set at a nearly 38% discount to the stock’s closing price on Wednesday.

Among public institutional shareholders, SBI Contra Fund holds a 6.37% stake, representing the bulk of the 6.62% owned by mutual funds as of the March 2025 quarter.

Retail participation is also significant, with 8,943 individual investors holding a combined 16.14% stake, each with an authorised investment of up to ₹2 lakh.

Following the OFS announcement, Wendt (India)’s stock dropped to ₹8,660, marking a 52% decline from its 52-week high of ₹18,033. The stock has now halved in value in 2025 and is hovering near its 52-week low.

Wendt (India) Q4FY25 Results

For the financial year, the Company reported consolidated sales of ₹23,114 lakhs, marking a 3% increase over the previous year. However, Profit After Tax (PAT) declined by 4% year-on-year to ₹3,948 lakhs.

For the quarter ended March 31, 2025, the Company recorded consolidated sales of ₹7,494 lakhs, reflecting an 8% growth compared to the corresponding quarter of the previous year. Despite the increase in revenue, PAT for the quarter stood at ₹1,289 lakhs, representing a 4% decline year-on-year.

Conclusion

The sharp decline in Wendt (India)’s share price reflects investor concerns over the exit of its foreign promoter, WENDT GmbH, especially given the steep discount offered in the OFS. With the company’s stock now trading near its 52-week low and down significantly from recent highs, market sentiment remains cautious.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.