Ineos Styrolution stock hits 20% lower circuit following OFS launch

The OFS announcement caught the market by surprise as the promoter holding in the company is at 75 per cent and no further divestment is required

Shares of MNC firm Ineos Styrolution India crashed 20 per cent on Tuesday after its promoter launched an offer for sale (OFS) to divest up to 24 per cent stake.

On Monday, the company said that its promoter, Ineos Styrolution APAC, would sell up to 4.22 million shares, or 24 per cent equity, through the OFS route at a floor price of Rs 800.

The announcement caught the market by surprise as the promoter holding in the company is at 75 per cent and no further divestment is required.

Shares of the company hit 20 per cent lower circuit to end at Rs 862.95 on BSE. The OFS garnered bids for only 2.17 million shares or 51 per cent of the total shares on offer.

In 2020, the promoters of the company had launched a delisting bid. The promoters of Ineos Styrolution India had rejected the delisting price discovered through the reverse book building price as it was too high.

Some 422,055 shares reserved for retail investors will be auctioned on Wednesday. Most bids from non-retail investors came in around Rs 805.4, showed stock exchange data.