Jaypee Infra share sale on Jan 24 to cut parent stake

To raise up to $94 mn through sale of 27.9 mn shares to meet Sebi's guidelines on minimum public shareholding

Jaypee Infratech's parent will sell up to 98.5 million shares on Thursday to raise up to $94 million to meet the market regulator's guidelines on minimum public shareholding.

Jaiprakash Associates, which owns about 83% of Jaypee Infratech, will sell 27.9 million shares to institutional investors with an option to increase it by another 70.6 million, the company said in a statement late on Tuesday.

Jaypee Infratech, which builds roads and homes primarily in the north Indian state of Uttar Pradesh, plans to announce the floor price for the share auction after market hours on Wednesday, it said.

The Securities and Exchange Board of India has directed listed companies to ensure that at least 25% of their shares are publicly traded by June end.

Jaypee Infratech shares were down around 4% at Rs 51 at midday.

JPMorgan is the banker to the deal.