Wendt India shares tumble 20% as German promoter launches offer for sale at 38% discount

Shares of Wendt (India) Ltd slipped as much as 20% on Thursday to Rs 8,374.15 on the BSE, after its German promoter, Wendt GmbH, announced a two-day offer for sale (OFS) at a steep 37.9% discount to the previous close, triggering a sharp sell-off in the stock.

The OFS, which opened for non-retail investors on May 15 and will continue for retail participants on May 16, aims to divest up to 37.5% stake in the company. In a BSE filing, Wendt India said the promoter has proposed to offload up to 6,00,000 shares, representing 30% of the total issued and paid-up equity share capital.

The promoter has also kept an option to sell an additional 1,50,000 equity shares, representing 7.5% of the total equity capital, in the event of oversubscription. If fully exercised, the total stake offloaded would rise to 37.5%.

Floor price deeply discounted

The floor price for the OFS has been set at Rs 6,500 per share — a steep 37.9% discount to Wednesday’s closing price and 64% below the 52-week high of Rs 18,000 hit on December 11, 2024. This sharp markdown triggered a strong market reaction, with the stock plunging by the maximum 20% intraday on Thursday.

Wendt India shares have already fallen 37% so far in 2025, and the discounted OFS further weighed on investor sentiment.

In its exchange filing, the company said, “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 in the event that such oversubscription option is not exercised, the equity shares forming part of the base offer size will continue to be referred to as offer shares.”

As of the latest shareholding data, Wendt GmbH held a 75% stake in the company.

OFS schedule and participation guidelines

Only non-retail investors are allowed to bid on May 15. These investors can also choose to carry forward their un-allotted bids to May 16 for allocation in the unsubscribed portion of the retail category.

Retail investors, along with such carry-forward bids from non-retail participants, will be allowed to place bids on May 16. The offer is being conducted via a separate window on the stock exchanges, open from 9:15 am to 3:30 pm IST.

The large divestment at a deep discount, combined with the stock's weak recent performance, has put Wendt India under intense market pressure as investors reassess the company’s near-term outlook.

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