Omaxe promoters' share sale via OFS under-subscribed

The offer to sell over 1.1 crore shares by promoters of realty firm Omaxe was today under- subscribed as the company received bids for only about 37% of the total quantity put up for sale.

This was fourth attempt by the promoters to sell shares through Offer For Sale (OFS) route. The first three rounds were also under-subscribed.

In order to meet market regulator Sebi's norms on minimum public shareholding, promoter group's three companies -- Constellation Capital, Kautilya Monetary Services and SA Finvest -- have offered to sell together 1,10,20,000 shares through Offer For Sale (OFS) on BSE platform.

The offer represents 6.35% of the total paid up share capital of the company as on date. The floor price was fixed at Rs 130 per share.

As per the data available with BSE, Omaxe got bids for only 40,27,993 shares, which is 36.55% of the total shares on offer, at an average price of Rs 131.

Promoters had 89.14% stake in Omaxe as on March 31. They brought down their stake to 81.35% stake in the first three rounds of OFS.

Promoters need to pare their stake to 75% for meeting the market regulator Sebi's guideline on minimum 25% public shareholding for private sector listed companies.

Sebi had cracked the whip on promoters of over 100 private sector firms, including Omaxe, for failing to attain minimum 25% public holding by June 3 deadline.

The regulator had ordered on June 4 to freeze their voting rights and corporate benefits and bar them from holding any new position on boards of listed firms.

Omaxe's share price fell by nearly 5% to close at Rs 130.85 apiece on BSE.