Jaiprakash Power Ventures (JP Power) on Thursday said its promoter group company, Jaypee Infra Ventures, would sell about 29 million shares through the offer-for-sale (OFS) route tomorrow. The share sale is aimed at complying with the 25 per cent public shareholding requirement.
Jaiprakash Associates, along with JP Infra, holds 76.11 per cent stake in the company. After tomorrow’s transaction, the total promoter holding in JP Power would be reduced to 75 per cent.
At the floor price, fixed at Rs 33.5 per share, JP Infra would be able to raise about Rs 97 crore. The OFS would be carried out through a separate window during trading hours tomorrow. The company has appointed Goldman Sachs India as the broker for the deal. The allocation of shares would be carried out on a proportionate basis, at a uniform price.
Shares of JP Power on Thursday closed at Rs 34.7 on the Bombay Stock Exchange, a fall of 4.4 per cent.
As the recent relaxations by the Securities and Exchange Board of India would not be applicable on the share sale, institutional investors would have to cough up the entire margin and investors would not be allowed to make any modification or cancellation of bids in the last 30 minutes before the closure of the sale.
Earlier, Wipro and DB Corp had pared promoter holdings through the OFS route.