Kalanithi Maran to sell 2% equity share in Sun TV through OFS

The move to sell equity share exclusively through the seller's brokers, is to comply with the norms of the Sebi on minimum shareholding by public in listed companies

Sun TV Network Ltd promoter Kalanithi Maran has proposed to sell 7,881,700 equity sahares in the company, of Rs 5 each, representing 2% of the equity share capital of the company through the Offer for Sale (OFS) through Stock Exchange Mechanism.

The move, to sell equity share exclusively through the seller's brokers, is to comply with the norms of the Securities Exchange Board of India (Sebi) on minimum shareholding by public in listed companies.

According to the mandate from the market regulator, the listed private companies should have a minimum of 25% public share holding.

As of March 31, 2013, Kalanithi Maran holds 30,34,45,157 equity shares, which is 77%  of the total equity share in the company.

Three firms, Axis Capital Ltd, India Infoline Ltd and UBS Securities India Pvt Ltd has been selected as the brokers on behalf of the seller and the seller shall declare the floor price for the sale on May 28, 2013, after closure of trading hours of the Stock Exchanges.

The sale would take place on seperate window of the stock exchanges and shall commence on May 29, 2013, at 9.15 am and shall close at 3.30 pm on the same day. The company's share prices stood at Rs 417.20, with an increase of 1.52% on Monday evening.

The Finance Ministry, in June 2010, has issued an amendment to the Securities Contracts (Regulation) Rules, 1957, mandating a minimum public share holding of 25% for the companies, while for the public listed companies, it is 10%.