Kennametal OFS opens, shares crash 13% on lower floor price

Shares of Kennametal India , which manufactures standard toolkit for machining turbine blades, crashed more than 13 percent amid hefty volumes on Thursday after the company fixed lower offer price for its offer for sale (OFS) that is opened for subscription.

Kennametal Inc, the promoter of Kennametal India, fixed floor price for the OFS at Rs 435 a share, a discount 18.5 percent to Wednesday's closing price.

Promoter, who holds 37.16 percent stake in the company as of December 2012, plans to sell 13.16 percent stake. Other promoter Meturit AG holds 51 percent stake in Kennametal India.

The stock touched a new 52-week low of Rs 462.25. At 09:55 hours IST, shares slipped 13.04 percent to Rs 463.95. 

Trading volumes increased 8 times to 80,281 equity shares as against five-day average of 9,846 shares.

In the previous trading session too, the share dropped 6.59 percent to Rs 533.50.