Waaree Energies, the leading solar PV module manufacturer, is selling 10,00,000 equity shares of Indosolar. The shares represent about 2.4 percent of Indosolar Ltd. Waaree Energies is the promoter company of Indosolar, and the proposed stake sale would be carried out through an offer for sale.
Why is Waarree Energies selling its shares?
According to the exchange filing by Waaree Energies, the company is offloading its stake in its group company, Indosolar, to achieve the minimum required public shareholding, as prescribed by the market regulator, Securities and Exchange Board of India (SEBI).
According to the SEBI guidelines, all the listed private companies in India are required to maintain at least a 25 percent public shareholding. According to BSE data, Waaree Energies currently has a 96.15 percent stake in Indosolar Ltd at the end of Q4FY25.
Stake sale: When and how
Waaree Energies said that the company will sell the 10 lakh shares of Indosolar Ltd via offer for sale on July 10 and 11 during the normal trading hours of the stock market. The share sale will take place in a separate window of the stock exchanges.
Only the first offer for sale, only non-retail investors are allowed to place their bids. The non-retail investors can carry forward their allocation bids for July 11. On the second day of bidding, only the retail investors can place their bids for the shares of Indosolar. The non-retail investors who chose to carry forward their bid on day one can revise it on day 2.
Furthermore, the share allocation will happen at or above the floor price on a price priority basis. Other than the mutual funds and insurance companies, single buyers are not allowed to buy more than 25 percent of the offer shares. In the non-retail category, 25 percent of the offer shares are reserved for the mutual funds and insurance companies. If the reserved portion remains unsubscribed, it will then be available for purchase to the non-retail investors.