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The promoters of Videocon Industries are selling 1.8 million shares of the company through the offer for sale (OFS) route to comply with the minimum public shareholding (MPS) requirement.The company has fixed floor price of Rs 177 per share for the transaction. Floor price is the minimum price at which bids can be made.
In the first hour of the OFS, the company had received only 10 bids after its secondary market price dropped below the floor price.
Shares of Videocon were last trading at Rs 174.75, down Rs 2.25, or 1.27%.
Market regulator Sebi has passed an order against the company, its promoters and directors for not complying with the 25% public float requirement, the deadline for which ended on June 3.
As per the June 2013 quarter shareholding data, the promoter holding in Videocon stands at 69.38%. The company, however, has issued global depository receipts (GDR), amounting to 8.17% of the total shares, which are not considered to be public float. As a result, the effective promoter holding in the company is 75.55%.
KJMC Capital Market Services is handling the OFS.
