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3M India today said that its promoter company, 3M Company US, plans to off load 1% of their holdings in the company to comply with the 25% minimum public shareholding requirement.
“This is to inform you that subject to appropriate market conditions, we, the seller, intend to reduce our shareholding in the company, in accordance with Clause 40A of the Listing Agreement, by way of an offer for sale through the stock exchange mechanism as soon as possible and in any event prior to June 3, 2013,” said the US-based parent through an emailed addressed to the Ajay Nanavati, managing director of 3M India.
Shares of 3M India, which has a market capitalisation of nearly Rs 4,000 crore, were trading at Rs 3,550, down Rs 185.25, or 4.96% on BSE.
“It is our intention that the seller and the company continue cooperating as they have been doing for a number of years, in order to deliver unmatched reach and quality for our customers,” 3M US said in the letter.
“...given that the sole purpose of the proposed offer for sale is to ensure compliance with the provision of SCRR, we do not believe that the relationship between the two companies will be affected by the proposed reduction in the seller's stake in the company,” it added.
The promoter holding in 3M India currently stands at 76%.
