Novartis India has rallied 10% to Rs 639, bouncing back 13% from its intra-day low after the company said it received a letter from Swiss drug firm Novartis AG, also the promoter of the company about their intention to reduce its holding to meet minimum public shareholding norm.
The stock opened at Rs 580 and hit a 52-week low of Rs 565 on the Bombay Stock Exchange (BSE). Around 14,792 shares have already changed hands on the counter till 0951 hours against an average less than 7,000 shares that were traded daily in past two weeks on BSE.
“The Company has received a letter dated March 27, 2013 from Novartis AG, Basel, the promoter company of Novartis India informing the Company that it intends to reduce its shareholding in the Company through Stock Exchange mechanism,” Novartis India said in a BSE filing.
This will enable the Company to comply with the minimum public shareholding requirement as prescribed under Securities Contract (Regulation) Rules and Clause 40A of the Listing Agreement, it added.
The promoter holds 76.42% stake in the company as on December 31, 2012, the shareholding pattern data shows.
The market regulator the Securities and Exchange Board of India (Sebi) has made it mandatory for the promoters of listed companies to prune their holding to a maximum of 75% by June this year so that a minimum 25% public shareholding can be maintained in listed private companies.
The stock opened at Rs 580 and hit a 52-week low of Rs 565 on the Bombay Stock Exchange (BSE). Around 14,792 shares have already changed hands on the counter till 0951 hours against an average less than 7,000 shares that were traded daily in past two weeks on BSE.
“The Company has received a letter dated March 27, 2013 from Novartis AG, Basel, the promoter company of Novartis India informing the Company that it intends to reduce its shareholding in the Company through Stock Exchange mechanism,” Novartis India said in a BSE filing.
This will enable the Company to comply with the minimum public shareholding requirement as prescribed under Securities Contract (Regulation) Rules and Clause 40A of the Listing Agreement, it added.
The promoter holds 76.42% stake in the company as on December 31, 2012, the shareholding pattern data shows.
The market regulator the Securities and Exchange Board of India (Sebi) has made it mandatory for the promoters of listed companies to prune their holding to a maximum of 75% by June this year so that a minimum 25% public shareholding can be maintained in listed private companies.