Promoter cuts to spur activity in MNC stocks
At least four companies – Fresenius Kabi Oncology, Disa India, Blue Dart and Xchanging Solutions – have already sold promoter shares through one-day offer-for-sale (OFS) window in recent weeks, while a few others, like Honeywell Auto, are lining up their share sales in due course.
Under the OFS route, promoters can offload shares to any investor through a special window allowed by the exchanges for a day.
Market analysts believes that more MNCs may opt for the OFS route to comply with Sebi’s norm as delisting is not a feasible option because of the huge cost involved.
“These MNCs have only two option. Either comply with Sebi’s directive by reducing promoters’ holding or get delisted. I think delisting is not a viable option because of the huge cost burden as many of the stocks have run-up in anticipation of delisting offers a huge premiums,” Destimoney Securities MD and CEO Sudip Bandhopadhyay said.
“Sebi’s deadline is approaching and in that scenario the OFS mechanism is the quickest way to reduce promoter holding. I am expecting that in the next two months, many companies will go for OFS route to shore-up non-promoter holding,” he said.
He further added that in due course, some correction in these share prices would be noticed. “The shares would not crash because these are fundamentally sound companies but
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