The stock had eased on high volume and in volatile trade on Monday (20 September 2005). BSE data showed that the parent, Timex BV, offloaded 7 lakh shares of Timex Watches in the secondary market on BSE on Monday at Rs 28.40. Monday’s selling of the scrip by parent materialised a day after Timex Watches said its promoter companies, Timex Watches BV and Time Master BV, have decided to reduce their combined holding of 83.54% in the company to below 75% through sale of shares in the open market in order to comply with the recent guidelines issued by the Securities and Exchange Board of India (SEBI) in this regard. On 26 August 2005, Sebi said listed companies should raise their non-promoter holding to a minimum 25% within a period of two years.

In order to bring down its stake to 75% (from current 83.54%), the parent will have to sell a huge 85 lakh shares. Overhang of such a large supply may keep the stock subdued in the coming months.

Timex Watches announced turnaround results and the completion of its restructuring exercise. For the full year ended 31 March 2005, it posted a net profit of Rs 72 lakh (loss of Rs 16.65 crore). Net sales grew 21% to Rs 82.86 crore. For Q4 March 2005, net profit stood at Rs 2.63 crore (loss of Rs 4.4 crore). Net sales grew a meagre 3.56% to Rs 17.72 crore.