With the deadline for complying with the minimum public shareholding norms just two trading sessions away, companies are rushing with their offer for sale (OFS) issues to bring down their promoter holding to 75%. On Thursday, nine companies launched their OFS issues that were collectively worth nearly R870 crore.
Three of the nine OFS remained under-subscribed even as the floor price was fixed at a discount to the prevailing market prices. This comes close on the heels of six companies launching their OFS on Wednesday with each of them getting over-subscribed.
According to merchant bankers, overseas investors bought the largest chunk of shares that were on offer on Wednesday, which is in-line with the trend that has been witnessed in most of the recent offerings by the private sector entities. May has seen shares worth over R3,800 crore being sold through the OFS route.
The stake sale by the promoters of Jet Airways was the second-largest of the day at R222 crore. It was, however, under-subscribed with bids received for less than 30 lakh shares compared to 43.18 lakh shares on offer.
Tata Teleservices, which did its first OFS on May 17, also saw poor investor response to its latest offering. The issue received bids for a paltry 68,771 shares against 3.50 crore shares on offer at a floor price of R7.60. Essar Ports was the third OFS of the day that remained under-subscribed.
The biggest OFS of the day was by the Adani Enterprises, in which the promoters stake was pegged at 76.46% prior to the offering. A total of 1.60 crore shares were on offer at a floor price of R227, thereby pegging the issue size of at least R364 crore. The issue was subscribed 1.23 times.
Novartis India OFS was subscribed the most at 7.26 times, with the issue receiving bids for 27 lakh shares against four lakh shares on offer. The indicative price for the offer was R495.80, much higher than the floor price of R375.
Saint-Gobain Sekurit India OFS also saw a strong response, where the promoters divested 10.77% stake and the issue was subscribed 3.11 times.
On Friday, four more companies ELCID Investments, Fomento Resorts, Modern India and Sharda Motor will launch their OFS.