Sona Koyo Steering dips 9 pc as share sale begins

Shares of Sona Koyo Steering Systems plunged as much as 9 per cent in the morning trade on the bourses after the company set Rs 85 as the floor price for the offer of sale of its equity shares that began today.

The company in a regulatory filing said, JTEKT Corporation proposes to sell up to an aggregate of 35,14,879 equity shares representing 1.77 per cent of the total paid up equity share capital of the company on April 6, (for non-retail investors) and on April 9 (for retail investors).

The floor price of the offer stood at Rs 85 per equity share, the filing added.

The issue will be opened for non-retail investors today and for retail investors on April 9. The floor price was 13.39 per cent discount to the closing price of April 5 at Rs 98.15 on the BSE.

Following the announcement, the shares of the company opened on a bearish note at Rs 93, then lost further ground to touch an early low of Rs 89.45, down 8.86 per cent over its previous closing price.

On NSE, the stock opened at Rs 90.80, then fell to a low of Rs 89.55, down 8.85 per cent over its last close.

Till the December quarter, JTEKT Corporation held 70.45 per cent stake in the company, while Maruti Suzuki India had 6.94 per cent stake in the auto component maker.