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After Tata Teleservices, yet another offer-for-sale (OFS) has failed to find takers for all its shares. Today, realty company Omaxe's OFS was undersubscribed, with roughly a third of the stocks recording no bids. The company had decided on a floor price of Rs 148 a share and five million shares were on offer. The sale aimed to raise Rs 74 crore.
On Friday, Tata Teleservices (Maharashtra) Limited had cancelled its OFS, which was under-subscribed.
Today, only 3.3 million shares of Omaxe, or 67.97 per cent of the shares on offer, were subscribed by the end of market hours, according to data on the BSE website. The company stock fell 7.24 per cent, closing at Rs 152.4. Promoters hold 89.14 per cent stake in the company.
In the Styrolution ABS (India) OFS today, of the 2.1 million shares on offer at a floor price of Rs 400, bids were made for 5.1 million, according to BSE data.
Two more OFS are lined up for tomorrow, and these would try to raise about Rs 1,200 crore. Oracle Financial Services Software is set to unload 4.4 million shares, worth over Rs 1,000 crore. The floor price for the offer has been set at Rs 2,275. Also, the promoter of JSW Energy is set to sell 28.23 million shares in the company at a floor price of Rs 61.5, according to an exchange notification today. The sale would be worth Rs 173 crore.
Public shareholding norms require private companies to have at least 25% of shares in the hands of the public by June 3rd. The value of share sales required to meet this deadline at around Rs 11,000 crore, according to brokerages. Public sector companies have been given till August to meet their shareholding norms.
A Bank of America Merrill Lynch India Strategy report authored by Jyotivardhan Jaipuria and Anand Kumar stated that the share sale could weigh on the market.
“We estimate that there could be supply of $1.8bn by June 3rd ($2.5bn by Aug’13) to comply with these Sebi guidelines. This could be a near term headwind to the market rally,” said the report dated 20th May.
