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Novartis India today said it's Swiss-promoter Novartis AG intends to reduce its stake in the Indian entity to enable it to meet Sebi guidelines on the minimum public shareholding in the listed companies.
Novartis AG, Basel has informed the company that it intends to reduce its shareholding in it through the stock exchange mechanism, Novartis India said in a filing to BSE.
"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.
As per the shareholding pattern of the company, as on September 30, 2012 Novartis AG had 76.42% stake in Novartis India.
The market regulator, the Securities and Exchange Board of India (SEBI), has made it mandatory for the listed companies to achieve a minimum of 25% public shareholding by June this year.
Shares of Novartis India were today trading at Rs 593.50 per scrip on BSE, up 2.83%, from its previous close.
