Puravankara Projects OFS subscribed 1.46 times

Puravankara Projects’ offer for sale (OFS) issue was subscribed 1.46 times today. At a clearing price of Rs 81 a share, the Bangalore-based real estate developer raised about Rs 115 crore by selling 14 million shares, about 6.6 per cent of the company’s total promoter shareholding.

This is the second stake sale by the company’s promoters in two days. Yesterday, the company sold about 23 million shares, raising Rs 201 crore, through an institutional placement programme (IPP). The IPP helped the company dilute 11.1 per cent of its promoter shareholding. Through the OFS and the IPP, the company’s promoters managed to cut their stake 17.7 per cent to 72.2 per cent.

In August 2010, the Securities and Exchange Board of India (Sebi), through an amendment to the Securities Contracts (Regulation) Rules, had mandated minimum public shareholding for private companies at 25 per cent and for public sector undertakings at 10 per cent. Private sector companies have to comply with the norms before June 3, while public sector ones have to comply by August 9.

Since Sebi had brought out the minimum public shareholding mandate, 45 OFS and eight IPPs have hit the Indian markets, raising about Rs 49,500 crore in funds.