JP Power OFS issue sails through

Manoj Gaur-promoted Jaiprakash Power Ventures’ offer for sale (OFS) received full subscription on Friday. The company’s promoter, Jaypee Infra Ventures, sold about 29 million shares at Rs 33.53 to raise a little over Rs 97 crore. The issue saw bids for 32.7 million shares, 12 per cent more than the number of shares on offer. Shares of the company closed at Rs 34.8, up 0.29 per cent. Following, the share sale, the promoter holding in the company has come down to 75 per cent from 76.11 per cent. Goldman Sachs India was the broker for the transaction.

JP Power is the fourth company, after DB Corp, Wipro and ONGC, to use the OFS route to conduct a share sale. So far, Indian companies have raised Rs 14,000 crore through this route. Market regulator the Securities and Exchange Board of India had introduced the OFS route to help promoters sell their stakes to meet the 25 per cent public shareholding norm.